Proximity transaction apparatus and methods of use thereof

ABSTRACT

The invention is a transaction terminal configured to perform a financial transaction intermediated by an RFID bearing payment token. The financial transaction is of a general type.

CROSS-REFERENCE TO RELATED APPLICATIONS

None.

FIELD OF THE INVENTION

The invention relates in general to facilitating commercialtransactions. In particular the invention relates to the use of radiofrequency enabled terminals that use payment tokens in facilitatingarbitrary commercial transactions.

BACKGROUND OF THE INVENTION

The use of radio frequency (RF) enabled payment devices are known. Oneexample is the Speedpass™ key fob that is issued by the ExxonMobil™Corporation. The holder of a Speedpass™ key fob can pay for the purchaseof gasoline at an ExxonMobil™ gas station by placing the Speedpass™ keyfob in close proximity to a specified portion of the pumping station.Circuitry in the pumping station then extracts payment information fromthe Speedpass™ key fob and activates the pump for operation. The paymentinformation is used to charge the purchase to the holder's account thatis maintained with the ExxonMobil™ Corporation. Another example of a RFenabled payment device is a RF highway toll payment device, such as theFastLane™ payment device issued by the Massachusetts Turnpike Authority(MTA) for use on toll roads associated with the MTA, or the E-ZPass™payment device issued by the New York State Thruway Authority. With thehighway toll payment device present in a vehicle, a user can passthrough a toll booth without being required to stop or provide immediatepayment in cash against a toll ticket. Each time a user passes through atoll booth, a RF reading device extracts user identification informationfrom the highway toll payment device. This user identificationinformation is used to charge an account maintained with the issuer foreach toll incurred.

While current RF enabled payment devices provide some convenience forthe purchase of certain goods or services from certain providers,significant disadvantages in their operation remain. For example, theSpeedpass™ key fob and the FastLane™ payment device can only be used toconduct transactions with the specific entities associated with theirrespective issuers, i.e., ExxonMobil™ gas stations and MTA toll booths(or other affiliated toll roads). Further, the commercial or financialtransactions available for use with the Speedpass™ key fob and theFastLane™ payment device are limited. In particular, only the goods thatare available at an ExxonMobil™ gas station can be purchased with theSpeedpass™ key fob and only payment of tolls for roadway travel onaffiliated toll roads can be achieved with the FastLane™ payment device.

There is a need for a RF payment device and system that provides greaterconvenience and flexibility to a user.

SUMMARY OF THE INVENTION

In one aspect, the invention relates to a terminal for conducting an adlibitum financial transaction intermediated by a payment token. Theterminal comprises a radio frequency reader. The reader is configured toread a radio frequency payment token presented as a payment medium forthe ad libitum financial transaction. The radio frequency reader isdevoid of a capability to simulate a reader employing reader technologyother than radio frequency. The terminal also comprises an output devicefor confirming that a transaction is being performed.

In one embodiment, the terminal further comprises a transactionregister. In another embodiment, the terminal is operated by asalesperson. In an additional embodiment, the terminal further comprisesa printer. In yet another embodiment of the terminal, the printer isconfigured to print a transaction receipt. In yet an additionalembodiment, the terminal further comprises an imaging device. In stillanother embodiment, the imaging device is a bar code reader.

In another aspect, the invention relates to a terminal for conducting afinancial transaction. The terminal comprises a radio frequency reader.The reader is configured to read a selected one of a plurality ofpayment tokens employing dissimilar data formats. The terminal is alsoconfigured to provide data corresponding to an elicited response fromthe selected one of a plurality of payment tokens employing dissimilardata formats. The terminal also comprises a memory for recording dataand a machine-readable program. The memory is in communication with theradio frequency reader. The terminal further comprises a communicationmodule in communication with the radio frequency reader and the memory.The communication module is configured to communicate bidirectionallywith a remote computer-based apparatus. The terminal additionallycomprises a processor module in communication with the memory and theradio frequency reader. The processor module is configured by themachine-readable program to attempt to decode the data corresponding tothe elicited response. In operation in response to an indication thatthe processor module is not configured to perform the decodingcorrectly, the communication module is configured to request from theremote computer-based apparatus at least one machine-readableinstruction for properly configuring the processor module to decode thedata.

The foregoing and other objects, aspects, features, and advantages ofthe invention will become more apparent from the following descriptionand from the claims.

BRIEF DESCRIPTION OF THE DRAWINGS

The objects and features of the invention can be better understood withreference to the drawings described below, and the claims. The drawingsare not necessarily to scale, emphasis instead generally being placedupon illustrating the principles of the invention. In the drawings, likenumerals are used to indicate like parts throughout the various views.

FIG. 1 illustrates in overview an exemplary embodiment of a proximitytransaction apparatus, according to principles of the invention;

FIG. 1A illustrates an embodiment of a hand held, portable proximitydevice, according to the invention;

FIG. 1B illustrates an RFID tag with an associated object;

FIG. 1C illustrates the basic features of an RFID transponder, as shownin the prior art;

FIGS. 2A-2D illustrate exemplary embodiments of an RFID tag or SmartCardcomprising a plurality of technologies and embodiments of readers usefulaccording to principles of the invention;

FIG. 3 illustrates exemplary embodiments of an RFID converter accordingto principles of the invention;

FIGS. 4A and 4B illustrate exemplary embodiments of an RFID amplifieraccording to principles of the invention;

FIG. 4C illustrates an exemplary embodiment of a RFID enabledtransaction terminal attached to a customer shopping device according tothe principles of the invention;

FIG. 4D illustrates the details of one embodiment of the transactionterminal shown in FIG. 4C;

FIG. 5 illustrates an exemplary embodiment of an RFID add-on readerdevice, according to principles of the invention;

FIG. 6 illustrates exemplary embodiments of operating methods of RFIDreaders controlled by software, according to principles of theinvention;

FIG. 7A illustrates an exemplary embodiment of a local financialtransaction system enabled to read RFID tags and RF payment informationaccording to the principles of the invention.

FIG. 7B illustrates an exemplary embodiment of a transaction cardaccording to the principles of the invention.

FIG. 8A illustrates an exemplary embodiment of proximity deviceconfiguration system according to the principles of the invention.

FIG. 8B illustrates an exemplary embodiment of a system for storing andupdating device related information according to the principles of theinvention.

FIG. 8C illustrates an exemplary embodiment of a system forautomatically configuring devices according to the principles of theinvention.

FIG. 8D illustrates exemplary embodiments of RFID information and accesstags according to the principles of the invention.

FIGS. 9A, 9B, 9C, and 9D illustrate exemplary embodiments of securityapparatuses for payment tokens according to the principles of theinvention.

DETAILED DESCRIPTION OF THE INVENTION

The invention relates to apparatus and methods useful in the conduct ofbusiness in a business establishment, where customers come to purchasegoods and/or services. Examples include sellers of goods, such assupermarkets, retail, and department stores, businesses that vendequipment, parts, and services, such as automobile dealerships, andconvenience stores and service businesses, such as movie theaters,sports franchises, restaurants, and medical offices. The invention canalso be practiced in non-commercial environments, such as hospitals,where databases of records and information are stored and accessed.Additionally the invention can be used to facilitate the interactionamong electronic devices, or between an object that is substantiallynon-electronic in nature and an electronic device.

Turning to FIG. 1, a proximity transaction system 100 of the inventionis depicted in overview. A proximity device 110 comprises a dataacquisition portion that can include one or more of: an optical imagingdevice 112, such as an electronic camera or a similar CCD or CMOSimaging array; a radio frequency interrogator/reader (RF I/R) 114, forexample an ISO/IEC 14443 compliant interrogator/reader; a magneticsymbol reading device 111; an electrical connector 116 having sufficientelectrical contacts to communicate electrically with an integratedcircuit card (such as an IC card, a “Smart Card,” a PCMCIA card, a PCcard), or with a contact or contactless RFID tag 119 which can include amemory; and a microprocessor 118 in electrical communication with eachof the optical imaging device 112, the RF I/R 114, the magnetic readingdevice 111, and with a memory 117 associated with the microprocessor118. The proximity device 110 is shown in schematic form, and can be astationary or portable device. For example, a hand held, portableproximity device 110 is shown in FIG. 1A, wherein each of the componentsof the schematic proximity device 110 is shown in the portable proximitydevice 110 by the same numeral. In FIG. 1B, the RFID tag 119 is depictedas being attached to an object 175. In various embodiments, the RFID tag119 is contained in a transaction card that can be used for a variety offinancial and non-financial transactions. As will be understood thetransactions enabled by the transaction card can include the exchangeand/or querying of data. In some embodiments, the RF I/R 114 also hasthe ability to write information to the RFID tag 119.

In some embodiments, the proximity device comprises a switch 115, whichcan be a manually activated switch such as a trigger configured for useby an operator, a pressure-activated switch, such as a scale, configuredto be activated when an object comes in contact therewith, or a switchactivated by an electronic signal, an optical signal, or an auditorysignal. The switch 115 when present is in electrical communication atleast with the microprocessor 118.

In some embodiments, the proximity device 110 comprises a communicationdevice 113. The communication device 113, when present, is at least inelectrical communication with the microprocessor 118. In someembodiments, the communication device 113 is a wireless bi-directionalcommunication device such as a radio or infrared transmitter/receiverthat operates according to any of the 802.11 standard communicationprotocols or other standard protocols such as USB. In other embodiments,the communication device 113 is a transmitter/receiver, such as a modem,having a wired connection to another device, such as a local point ofsale terminal 122, and operating according to any conventional datacommunication protocol. The communication device 113 in a hard-wiredembodiment can be a circuit switched device or a packet switched device,as are well known in the data communication arts. In some embodiments,the proximity device 110 comprises acoustic input and output devices,such as a microphone and speaker, and the communication device 113 iscapable of communicating voice signals as well as data, for example,according to the Voice-over-Internet Protocol (VoIP).

The proximity device 110 is able to read a wide variety of informationfrom diverse sources. For example, the optical imaging device 112 can bedesigned to collect optical, infrared, or ultraviolet electromagneticsignals, depending on the composition of lenses and materials ofconstruction of the imaging sensor thereof. For example, a siliconsensor operating with common plastic or glass lenses can detect signalsin the visible region of the electromagnetic spectrum. A galliumarsenide or other III-V compound semiconductor sensor operating withquartz optics can detect signals in the ultraviolet. Infrared sensors,such as the IMD series of pyroelectric infrared sensors available fromMurata Manufacturing Company, Ltd., of Tokyo, Japan, can be used todetect the presence of infrared signals.

In embodiments wherein the optical imaging device 112 is an electroniccamera or a CCD or CMOS array, the signals obtained from the opticalimaging device can be decoded with a suitably programmed computer ormicroprocessor, and can represent many different kinds of information.For example, it is well known in the optical imaging arts that lightreflected from objects and converted to electrical signals can bedecoded to reveal the presence, and the information content, of onedimensional bar codes, two dimensional bar codes, OCR fonts, charactersand numeral that are handwritten, typed and/or printed, biometricindicators such as retinal patterns, and predefined patterns includingspecific regions thereof, such as shipping labels and bank checks. Otherembodiments that can potentially be used with the current radiofrequency based technology include those described in one or more of:U.S. Utility patent application Ser. No. 10/044,137, filed Jan. 11,2002, entitled “Transaction Terminal Encryption Apparatus ComprisingEncryption Mode Indicator;” U.S. Utility patent application Ser. No.10/252,227, filed Sep. 23, 2002, entitled “Transaction TerminalIncluding Imaging Module;” U.S. Utility patent application Ser. No.10/339,444, filed Jan. 9, 2003, entitled “Transaction TerminalComprising Imaging Module;” U.S. Provisional Patent Application Ser. No.60/538,958, filed Jan. 23, 2004, entitled “System and Method to Storeand Retrieve Indicia Associated Information Content;” U.S. Utilitypatent application Ser. No. ______, Attorney Docket No. 283-417.01,filed Apr. 7, 2004, entitled “HTTP Enabled Computer Peripheral;” andU.S. Utility patent application Ser. No. 10/819,616, filed, Apr. 7,2004, entitled “Routing Device And Method For Use With A HTTP EnabledComputer Peripheral,” all of which applications are incorporated hereinby reference in their entirety.

In some embodiments, the radio frequency interrogator/reader (RF I/R)114 is an ISO/IEC 14443 compliant RFID interrogator and reader that caninterrogate an RFID contactless device and that can recover the responsethat an RFID tag 119 emits. The International Organization forStandardization (ISO) and the International Electrotechnical Commission(IEC) are bodies that define the specialized system for worldwidestandardization. In other embodiments, the radio frequencyinterrogator/reader 114 operates in accordance with ISO/IEC 10536, orISO/IEC 15963. Contactless Card Standards promulgated by ISO/IEC cover avariety of types as embodied in ISO/IEC 10536 (Close coupled cards),ISO/IEC 14443 (Proximity cards), and ISO/IEC 15693 (Vicinity cards).These are intended for operation when very near, nearby and at a longerdistance from associated coupling devices, respectively. In someembodiments, the radio frequency interrogator/reader 114 is configuredto read tags that comprise information recorded in accordance with theElectronic Product Code (EPC), a code format proposed by the Auto-IDCenter at MIT. EPC is described in more detail herein below. In someembodiments, the radio frequency interrogator/reader 114 operatesaccording to a proprietary protocol. In some embodiments, the radiofrequency interrogator/reader 114 communicates at least a portion of theinformation received from an interrogated RFID tag to a computerprocessor that uses the information to access or retrieve data stored ona server accessible via the Internet. In some embodiments, theinformation is a serial number of the RFID tag or of the objectassociated with the RFID tag.

In some embodiments, the magnetic symbol reading device 111 is amagnetic stripe reader capable of reading objects such as cards carryinginformation encoded in magnetic format on one or more tracks, forexample, the tracks used on credit cards. In other embodiments, themagnetic reading device is a magnetic character reading device, forreading characters printed using magnetic ink, such as is found on bankchecks to indicate an American Bankers Association routing number, anaccount number, a check sequence number, and a draft amount. In someembodiments, both types of magnetic reading devices are provided.

A point of sale terminal 122 is optionally a part of the system shown inFIG. 1. The point of sale terminal 122, when present, is incommunication with a local financial transaction system 120. In someembodiments, the point of sale terminal 122 is a cash register or acomputer with an associated cash drawer and display. In someembodiments, the point of sale terminal 122 is operated by a cashier. Insome embodiments, the point of sale terminal 122 is not provided, andthe user of the proximity transaction system 100 (otherwise referred toherein as the customer or the purchaser) conducts a transaction withoutassistance from a cashier or other employee of a vendor. In such acircumstance, the proximity device 110 communicates directly with thelocal financial transaction system 120, by hard-wired or by wirelesscommunication technology. As will be understood, the proximity device110 is typically operated by a cashier when a cashier is present, isoperated by a purchaser when no cashier is present, and can optionallybe operated by the purchaser when a cashier is present.

In some embodiments, the local financial transaction system 120comprises a display 124, such as a computer monitor or video screen. Insome embodiments, the local financial transaction system 120 comprises aprinter 126, for generating a paper document, such as a receipt or billof goods, to be presented to the customer for the customer's records,and/or to be used as evidence of a completed transaction permitting thecustomer to remove purchased goods from the business premises. The localfinancial transaction system 120 comprises a central processing unit(CPU) 125 and a memory 127 in communication with the CPU 125. In someembodiments, the CPU 125 is a microprocessor-based integrated circuitcomprising a memory 127.

The local financial transaction system 120 maintains a local database.The local database comprises information useful in operating thebusiness. Examples of information useful in running a business caninclude maintaining a record of sales volume as a function of time;maintaining a running total of inventory of particular items offered forsale; maintaining and updating a price list; maintaining data relatingto special offers (e.g., discounts for members of particular groups,such as senior citizens, members of an affinity group, bearers ofdiscount coupons, or volume purchasers); and recording data relating tothe purchasing history of a purchaser, such as the maintenance record ofa vehicle. Any other information that can be useful in operating thebusiness is contemplated herein as being appropriate for such a localdatabase.

The local financial transaction system 120 comprises communicationtechnology for bi-directionally exchanging information with a centralfinancial transaction system 130. The bi-directional communicationtechnology can be any of hard-wired communication by a hard-wired (e.g.,a medium such as electrical wire and optical fiber) connection 129through a switching system 140 such as the telephone system or theinternet, and a wireless communication system 128, such as byelectromagnetic transmission using radio 150 or via communicationsatellite 160, as well as a system that comprises both hard-wired andwireless links.

The central financial transaction system 130 comprises a centralprocessing unit 132 and a data repository 134, such as a computer andassociated memory. The central financial transaction system 130 is someembodiments is more than one central processing unit, and more than onedata repository, for example, a network of computers that communicateamong themselves, such as is found in the interconnection of local banksand the central banking system/financial settlement system of a country.In general, the central financial transaction system 130 is understoodin the context of the present invention to represent that portion of thefinancial system that maintains accounts of credits and debits (e.g.,banks, credit card issuers) and that receives from a vendor facility anotification of a transaction, including any or all of a transactionamount, an account identifier of a purchaser, an account identifier of avendor, a time of the transaction taking place, and as needed,confirmatory information, such as a password, a personal identificationnumber (PIN), or biometric information, useful to assure theauthenticity of the purchaser and/or his or her authority to conduct thetransaction. Optionally, the systems have a keypad or keyboard for entryof data by a user, for example for entry of a PIN or otheridentification or identity confirmation information.

In one embodiment, the invention utilizes information recorded in theform of electronic product codes (EPCs). A manufacturer will be assignedEPCs for its products by an entity authorized to assign codes, such asAutoID Inc., a joint venture set up by the Uniform Code Council and EANInternational to commercialize the technology. The manufacturerregisters its company code and product identifiers (numbers associatedwith particular SKUs) with a provider of the internet-based data storageservice, such as the Object Name Service (hereinafter ONS) provided byVeriSign. The provider of the internet-based data storage serviceassociates the company code and SKU number with an Internet Protocol(hereinafter “IP”) address, or with a URL, that is replicated throughthe ONS. When a tag is scanned, ONS provides an address for computers touse to locate and access a server where the information is stored.

In one embodiment, product information associated with a company codeand product identifier is stored in Product Markup Language (hereinafter“PML”), a variant of the World Wide Web's Extensible Markup Language(XML). PML files are stored on servers, which are referred to as EPCInformation Services or PML servers. In some embodiments, PML files arehosted on secure servers, which can authenticate users and provideaccess to information based on classes defined by customers. Forexample, a manufacturer might want to make some product informationavailable to logistics partners, but not to suppliers or to competitors.In some embodiments, a server at a first location can hold a directoryof the locations of other servers hosting product information, so thatinitial inquiries from entities authorized to view information can betransmitted to a single server and redirected therefrom to the serverholding the information, rather than requiring a plurality of serveraddresses to be interrogated to find the information.

The EPC is a unique number that identifies a specific item in the supplychain. The EPC is stored on a radio frequency identification (RFID) tag,which combines a silicon chip and an antenna. Once the EPC is retrievedfrom the tag, it can be associated with dynamic data such the origin ofan item (e.g., the facility or location where the item was made) or thedate of its production. The EPC is similar to a Global Trade Item Number(GTIN) or Vehicle Identification Number (VIN), in that it identifies aspecific item, including the manufacturer of the item, a sequentialnumber representing the order in which the item was manufactured, andvarious attributes of the item.

The EPCglobal Network uses radio frequency identification (RFID)technology to enable information about items in the supply chain to beavailable for retrieval, viewing and use. The network is comprised offive fundamental elements: the Electronic Product Code (EPC), the IDSystem (EPC Tags and Readers), the Object Name Service (ONS), thePhysical Markup Language (PML), and Savant. The ONS tells the computersystems where to locate information on the network about the objectcarrying an EPC, such as when the item was produced. Physical MarkupLanguage (PML) is used as a common language in the EPCglobal Network todefine data on physical objects. Savant is a technology implemented insoftware that acts as the central nervous system of the EPCglobalNetwork. Savant manages and moves information in a way that does notoverload existing corporate and public networks.

EPC tags enable automatic, non-line-of-sight identification. It isexpected that bar codes, such as those used to represent UniversalProduct Codes (UPC codes), and EPC tags will co-exist in commerce for aconsiderable time. More complex bar codes, such as two-dimensional (2D),which can encode considerable amounts of information in compact format,can provide as much or more information than an EPC tag. However, EPCtags that comprise re-writeable memory can have applications that aredifficult to implement using a static coding of information. In anotherembodiment, electronic tags that comprise sensors, such as a temperaturesensor, an accelerometer, a pressure sensor, or a stress sensor, canprovide information about the environmental conditions experienced by anobject. A time capability can also be provided to allow recording achronological record or history.

At present, it is prohibitively expensive to put an EPC tag on everybottle, can, box, or bag of product in commerce. However, as prices oftags moderate, it is foreseeable that the time will come that suchindividualized tags will be practical for products costing modestamounts of money. At an intermediate point in time, a tag thatidentifies a plurality of interchangeable objects in a single lot orbatch will be economically meaningful, such as a tag on a pallet orshipping container comprising a plurality of examples of anundifferentiated product such as cans of corn. EPC tags are expected tosupport both the reading of information from the tag and the writing ofinformation to a tag. It is foreseeable that EPC tags will allow atagged object to carry information that can be updated or augmented asthe object travels from location to location, is manipulated (forexample by being inspected, subjected to maintenance, or otherwisemodified), or is combined with or used with other objects. As anexample, an EPC tag could include instructions for use of the object, amaintenance record, and a list of components, for example parts orsoftware that the object comprises. Over time, the EPC tag can berewritten to record additions or deletions of components, such asupdated software, and modifications of the methods of use of the object,for example instructions that optimize the use of the new software. Itis expected that the EPC tag can further include records of when theobject was last serviced or tested for appropriate performance. Havingsuch information attached to the object itself can help to make theobject more convenient to use.

RFID Overview

The AIM, Inc. White Paper entitled “Radio Frequency Identification—RFIDA basic primer” (Document Version: 1.11, and having a publication dateof Sep. 28, 1999) incorporated herein by reference in its entiretyprovides an overview of some of the basic aspects of RFID systems. Thefollowing description is an edited excerpt from the document. In generalthe exchange of data between tags and readers, such as the proximitydevice 110, is by wireless communication and two methods distinguish andcategorize RFID systems. One method is based on close proximityelectromagnetic or inductive coupling (e.g., the use of evanescent wavesover distances short by comparison with a wavelength of the wave) andone is based on propagating electromagnetic waves. Coupling is viaantenna structures forming an integral feature in both tags and readers.While the term antenna is generally considered more appropriate forpropagating systems it is also loosely applied to inductive systems.

In RFID systems, transmitting data is subject to the vagaries andinfluences of the media or channels through which the data has to pass,including the air interface. Noise, interference and distortion are thesources of data corruption that arise in practical communicationchannels that must be guarded against in seeking to achieve error freedata recovery. Moreover, asynchronous data communication processesrequire attention to the form in which the data is communicated. Channelencoding involves structuring the bit stream to accommodate these needs.The coding scheme applied appears in system specifications, andgenerally is transparent to the user of a RFID system. Various encodingschemes can be distinguished, each exhibiting different performancefeatures.

The data is superimposed on a sinusoidally varying field or carrier waveto transfer data efficiently between the two communicating components.The superimposition process is referred to as modulation. Variousschemes are available for this purpose, each having particularadvantages. All of the schemes are based on changing the value of one ofthe primary features of an alternating sinusoidal source, such as itsamplitude, frequency or phase in accordance with the data carrying bitstream. On this basis one can distinguish amplitude shift keying (ASK),frequency shift keying (FSK) and phase shift keying (PSK).

In addition to non-contact data transfer, wireless communication canalso allow non-line-of-sight communication. However, with very highfrequency systems more directionality is evident and can be tailored toneeds through appropriate antenna design.

Carrier Frequencies

In wired communication systems the physical wiring constraints allowcommunication links and networks to be effectively isolated from eachother. The approach that is generally adopted for radio frequencycommunication channels is to separate on the basis of frequencyallocation. Generally covered by government regulation, differentsections of the electromagnetic spectrum are assigned to differentpurposes. Three frequency ranges are generally distinguished for RFIDsystems, low, intermediate (medium) and high. Table 1 summarizes thesethree frequency ranges, along with the typical system characteristicsand examples of major areas of application. TABLE 1 Frequency Bands andApplications (from AIM White Paper) Frequency Band CharacteristicsTypical Applications Low Short to medium read range Access control100-500 kHz Inexpensive Animal identification low reading speedInventory control Car immobiliser Intermediate Short to medium readrange Access control 10-15 MHz potentially inexpensive Smart cardsmedium reading speed High Long read range Railroad car monitoring850-950 MHz High reading speed Toll collection systems 2.4-5.8 GHz Lineof sight required Expensive

Data Transfer Rate and Bandwidth

Choice of field or carrier wave frequency is of primary importance indetermining data transfer rates. In practical terms the rate of datatransfer is influenced primarily by the frequency of the carrier wave orvarying field used to carry the data between the tag and its reader.Generally speaking the higher the frequency the higher the data transferor throughput rates that can be achieved. This is intimately linked tobandwidth or range available within the frequency spectrum for thecommunication process. According to the Nyquist Theorem, the channelbandwidth needs to be at least twice the bit rate required for theapplication in mind. Where narrow band allocations are involved thelimitation on data rate can be an important consideration. It is clearlyless of an issue where wide bandwidths are involved. Using the 2.4-2.5GHz spread spectrum band, for example, 2 megabits per second data ratesmay be achieved, with added noise immunity provided by the spreadspectrum modulation approach. Spread spectrum apart, increasing thebandwidth allows an increase noise level and a reduction insignal-to-noise ratio. Since it is generally necessary to ensure asignal is above the noise floor for a given application, bandwidth is animportant consideration in this respect.

Range and Power Levels

The range that can be achieved in a RFID system is essentiallydetermined by the power available at the reader/interrogator tocommunicate with the tag(s), the power available within the tag torespond, and the environmental conditions and structures, the formerbeing more significant at higher frequencies including signal to noiseratio.

Although the level of available power is the primary determinant ofrange, the manner and efficiency in which that power is deployed alsoinfluences the range. The field delivered from an antenna extends intothe space surrounding it and its strength diminishes with respect todistance. The antenna design will determine the shape of the field orpropagation wave delivered, so that range will also be influenced by theangle subtended between the tag and antenna. Directional antennas may beused if the orientation between a tag and a reader will be known. Theenergy requirement for a directed beam to be read and understood is ingeneral significantly lower than for an omnidirectional beam operatingover the same distance. However, in many instances omnidirectionalantennas will be needed because there is no way, a priori, to know how atag and a reader will be aligned. In some instances, an antenna systemthat sweeps a beam of energy over an arc or angular range may be a goodcompromise.

As is commonly known in a space free of any obstructions or absorptionmechanisms, the strength of a field reduces in inverse proportion to thesquare of the distance. For a wave propagating through a region in whichreflections can arise from the ground and from obstacles, the reductionin strength can vary considerably, in some cases as an inverse fourthpower of the distance. The phenomenon known as “multi-path attenuation”arises when there are different paths due to reflections andabsorptions. At higher frequencies absorption due to the presence ofmoisture can further influence range. It is therefore important in manyapplications to determine how the environment, internal or external, caninfluence the range of communication.

In general the power available to the tag is significantly less thanthat available to the reader. This means that sensitive detectioncapabilities are useful within the reader to handle the return signals.In some systems the reader constitutes a receiver and is separate fromthe interrogation source or transmitter, particularly if the ‘up-link’(from transmitter-to-tag) carrier is different from the ‘down-link’(from tag-to-reader).

Basic features of an RFID transponder and its interaction with areader/programmer are described in the AIM, Inc. White Paper entitled“Radio Frequency Identification—RFID A basic primer” (Document Version:1.11, and having a publication date of Sep. 28, 1999), which has alreadybeen incorporated herein by reference. For example, a figure from thatpaper is reproduced here as FIG. 1C for the convenience of the reader.FIG. 1C depicts an RFID tag or transponder 180 with an antenna 182, areader/programmer 184 in the form of a card designed to be installed inan expansion slot of a personal computer, and an antenna 186 attached tothe reader/programmer 184. Interaction between the reader/programmer 184and the tag 180 is shown as occurring across an air interface, and canbe bi-directional, as indicated by the arrows 190.

The transponder can include memory, which memory can comprise any one ormore of read-only (ROM), random access (RAM) and non-volatileprogrammable memory for data storage, depending upon the type andsophistication of the device. The ROM-based memory can be used toaccommodate security data and the transponder operating systeminstructions which, in conjunction with the processor or processinglogic deals with the internal management functions such as responsedelay timing, data flow control, and power supply switching. TheRAM-based memory can be used to facilitate temporary data storage duringtransponder interrogation and response.

Non-volatile programmable memory may take various forms, electricallyerasable programmable read only memory (EEPROM) being typical.Non-volatile memory can be used to store the transponder data. In someembodiments, non-volatile memory is used to ensure that the data isretained when the device is in its quiescent or power-saving “sleep”state. Some memory types, such as magnetic bubble memory, are inherentlynon-volatile.

Data buffers are further components of memory, used to temporarily holdincoming data following demodulation and outgoing data for modulationand interface with the transponder antenna. The interface circuitryprovides the facility to direct and accommodate the interrogation fieldenergy for powering purposes in passive transponders and triggering ofthe transponder response. Where programming is accommodated, facilitiesmust be provided to accept the data modulated signal and perform thenecessary demodulation and data transfer processes.

The transponder antenna is the structure by which the device senses theinterrogating field and, where appropriate, the programming field andalso serves as the means of transmitting the transponder response tointerrogation.

A number of features, in addition to carrier frequency, characterizeRFID transponders and form the basis of device specifications,including: the source of the transponder power, the transponder datacarrying options, data read rates, programming options, and physicalform.

Powering tags—For tags to work they require power, albeit at arelatively low level (e.g., microwatts to milliwatts). Tags are eitherpassive or active, the designation being determined entirely by themanner in which the device derives its power.

Active tags are powered by an internal battery and are typicallyread/write devices. They usually contain a cell that exhibits a highpower-to-weight ratio and are usually capable of operating over atemperature range of −50° C. to +70° C. The use of a battery impliesthat a sealed active transponder has a finite lifetime. However, asuitable cell coupled to suitable low power circuitry can ensurefunctionality for as long as ten or more years, depending upon theoperating temperatures, read/write cycles and usage. Alternative sourcesof energy such as solar cells or miniature fuel cells now in developmentare potentially useful for powering an active tag as the energyrequirements of such a tag are relatively modest and easily within thecapability of such alternative energy sources. In general terms, activetransponders allow greater communication range than can be expected forpassive devices, better noise immunity and higher data transmissionsrates when used to power a higher frequency response mode.

Passive tags operate without an internal battery source, deriving thepower to operate from the field generated by the reader. Passive tagsare consequently much lighter than active tags, less expensive, andoffer a virtually unlimited operational lifetime. The trade-off is thatthey have shorter read ranges than active tags and require ahigher-powered reader. Passive tags are also constrained in theircapacity to store data and may exhibit reduced ability to perform wellin electromagnetically noisy environments. Sensitivity and orientationperformance may also be constrained by the limitation on availablepower. Despite these limitations passive transponders offer advantagesin terms of cost and longevity. They have an almost indefinite lifetimeand are generally lower on price than active transponders.

Data carrying options—Data stored in data carriers invariable requiresome organization and additions, such as data identifiers and errordetection bits, to satisfy recovery needs. This process is oftenreferred to as source encoding. Standard numbering systems, such asUCC/EAN and associated data defining elements can be applied to datastored in tags. The amount of data depends on the application andrequires an appropriate tag to meet the need. Categories used toclassify data carried by tags includes: identifiers, in which a numericor alphanumeric string is stored for identification purposes or as anaccess key to data stored elsewhere in a computer or informationmanagement system, and portable data files, in which information can beorganized, for communication or as a method or instrument for initiatingactions either independently or in combination with data storedelsewhere.

In terms of data capacity, tags are available from single bit tokilobits. The single bit devices can be used for surveillance purposes.Retail electronic article surveillance (EAS) is the typical applicationfor such devices, being used to activate an alarm when detected in theinterrogating field. They may also be used in counting applications.

Devices characterized by data storage capacities up to 128 bits can beused to hold a serial or identification number together, possibly, withparity check bits. Such devices may be manufacturer or userprogrammable. Tags with data storage capacities up to 512 bits, arefrequently user programmable, and suitable for accommodatingidentification and other specific data such as serial numbers, packagecontent, key process instructions or possibly results of earlierinterrogation/response transactions.

Tags characterized by data storage capacities of around 64 kilobits maybe regarded as carriers for portable data files, although they can beused for any purpose. With still larger capacity it is possible toorganize data into fields or pages that may be selectively interrogatedduring the reading process.

Data read rate—As indicated above, the data transfer rate is essentiallylinked to carrier frequency. The higher the frequency, generallyspeaking the higher the transfer rates. It should also be appreciatedthat reading or transferring the data requires a finite period of time,even if rated in milliseconds, and can be an important consideration inapplications where a tag is passing swiftly through an interrogation orread zone.

Data programming options—Depending upon the type of memory a tagcontains the data carried may be read-only, write once read many (WORM)or read/write. Read-only tags are invariably low capacity devicesprogrammed at source, usually with an identification number. WORMdevices are user programmable devices. Read/write devices are alsouser-programmable by allowing the user to change data stored in a tag.Portable programmers may be recognized that also allow in-fieldprogramming of the tag while attached to the item being identified oraccompanied.

Physical Form—RFID tags are typically available in a wide variety ofphysical forms, shapes sizes and protective housings. For example,animal tracking tags, inserted beneath the skin, can be as small as apencil lead in diameter and ten millimeters in length. In addition, tagscan be screw-shaped to identify trees or wooden items, or credit-cardshaped for use in access applications. Anti-theft hard plastic tagsattached to merchandise in stores are heavy-duty and have typicaldimensions of 120 by 100 by 50 millimeters; other anti-theft tagsmeasure approximately 1.5″×1.5″×0.003″ to 0.008″ thickness. Among otheruses, these rectangular transponders can track commercial products,inter-modal containers, heavy machinery, trucks, railroad cars and thelike for maintenance and business analysis and management operations.

The Reader/Interrogator

Readers and interrogators (generally referred herein to as readers) candiffer quite considerably in complexity, depending upon the type of tagsbeing supported and the functions to be fulfilled. In general, however,the overall function of a reader is to provide the means ofcommunicating with the tags and facilitating data transfer. Functionsperformed by the reader include but are not limited to reading data,signal conditioning, parity error checking correction, or the like. Oncea signal from a tag has been correctly received and decoded, algorithmsmay be applied to decide whether the signal is a repeat transmission. Inthe case that it is, the reader may then instruct the transponder tocease transmitting. This is commonly known as the “Command ResponseProtocol” and is used to circumvent the problem of reading multiple tagsin a short space of time. The use of interrogators in this fashion canbe referred to as “Hands Down Polling”. An alternative, more secure, butslower tag polling technique is called “Hands Up Polling” which involvesthe interrogator looking for tags with specific identities, andinterrogating them in turn. This is contention management, and a varietyof techniques have been developed to improve the process of batchreading. A further approach can use multiple readers, multiplexed intoone interrogator.

RF Transponder Programmers

Transponder programmers are the mechanism by which data is delivered towrite once, read many (WORM) and read/write tags. Programming isgenerally carried out off-line, at the beginning of a batch productionrun, for example.

For some systems, re-programming may be carried out on-line if, forexample, the tag is being used as an interactive portable data filewithin a production environment. In some instances, data may need to berecorded during each process. Removing the transponder at the end ofeach process to read the previously processed data and to program newdata increases processing time and detracts substantially from theintended flexibility of the application. By combining the functions of areader and a programmer, data may be appended or altered in thetransponder as required, without compromising the production line.

The range over which the programming can be achieved is generally lessthan the read range and in some systems near contact positioning isrequired. Programmers are also generally designed to handle a single tagat a time.

RFID System Categories

Some categories employing RFID systems include: EAS (Electronic ArticleSurveillance) systems, portable data capture systems, networked systems,and positioning systems. EAS systems are typically a one bit system usedto sense the presence/absence of an item. Retail stores frequentlyemploy EAS systems where each item is tagged and large antenna readersare placed at exits to detect the unauthorized removal of the items.

Portable data capture systems are characterized by the use of portabledata terminals with integrated RFID readers. These systems are tolerantto considerable variation in the sources of data read from tags.Typically a hand-held readers/portable data terminal is used to capturedata that is then either transmitted directly to a host informationmanagement system via a radio frequency data communication (RFDC) linkor held for delivery by line-linkage to the host on a batch processingbasis.

In one embodiment of the invention, data is read by a portable dataterminal, a hand-held proximity reader, or the like and then transmittedvia line of sight communication to a reception unit. The line of sightcommunication can be in the form of a narrowly focused lasertransmission. In a further embodiment, reception units are placed on thewalls at set intervals so that within, for example, a warehouse or aretail establishment relatively little movement is required to achieveline-of-site communication. The line-of-site communication can happenover short distances (e.g., less than one meter) or up to long distances(e.g., tens of meters). In an additional embodiment, the reception unitsare able to receive simultaneous communications from a plurality ofportable data terminals. In another embodiment, the reception unitscontain display systems for indicating whether the unit is available toreceive transmissions.

Networked systems applications are generally characterized by fixedposition readers deployed within a given site and connected directly toa networked information management system. The transponders arepositioned on moving or moveable items, or people, depending uponapplication. However, other configurations are within the scope of thisdisclosure.

Positioning systems use transponders to facilitate automated locationand navigation support for guided vehicles. Readers are positioned onvehicles and are linked to an on-board computer and communicationconnection to a host information management system. The transponders canbe embedded in the floor of the operating environment and can beprogrammed with identification and location data. The reader antenna istypically located beneath the vehicle to allow closer proximity to theembedded transponders.

Areas of Application for RFID Systems

Potential applications for RFID systems include broad areas of industry,commerce, and services. The attributes of RFID are complimentary toother data capture technologies and thus able to satisfy particularapplication requirements that cannot be adequately accommodated byalternative technologies. Some of the areas of application for RFIDinclude: transportation and logistics, manufacturing and processing,security, waste management, postal and package tracking, airline baggagereconciliation, road toll management, electronic articlesurveillance—clothing retail outlets being typical, protection ofvaluable equipment against theft, unauthorized removal or assetmanagement, controlled access to vehicles, parking areas and fuelfacilities—depot facilities being typical, controlled access ofpersonnel to secure or hazardous locations, time and attendance—toreplace conventional “slot card” time keeping systems, animalhusbandry—for identification in support of individualized feedingprograms, automatic identification of tools in numerically controlledmachines—to facilitate condition monitoring of tools, for use inmanaging tool usage and minimizing waste due to excessive machine toolwear, identification of product variants and process control in flexiblemanufacture systems, sport time recording, electronic monitoring ofoffenders at home, vehicle anti-theft systems and car immobilizers.

A short overview of EPC technology is presented below. The descriptionof features of the EPC technology is presented in far greater detail inpublicly available documents. Version 1.0 of the EPCglobal Network wasreleased in September 2003, and offers a complete set of technicalspecifications for every component in the EPCglobal Network, includingthe number system, tag, readers, and reference implementations on manysoftware components. EPCGlobal Version 1.0 Specifications, available atwww.epcglobalinc.com/standards_technology/specifications.html, includes:EPC™ Tag Data Standards Version 1.1 Rev. 1.23, a 76 page document datedFeb. 16, 2004, which is available by activating a link on the web pageidentified in this sentence; a Technical Report entitled “13.56 MHz ISMBand Class 1 Radio Frequency Identification Tag Interface Specification:Candidate Recommendation, Version 1.0.0, a document comprising 31 pagesplus front and back covers dated Feb. 1, 2003, which is available byactivating a link on the web page identified in this sentence; a 46 pagedocument dated Sep. 5, 2003 entitled “Auto-ID Reader Protocol 1.0” whichis available by activating a link on the web page identified in thissentence; a 17 page document dated Aug. 12, 2003 entitled “Auto-IDObject Name Service (ONS) 1.0” which is available by activating a linkon the web page identified in this sentence; a 58 page document datedSep. 1, 2003 entitled “Auto-ID Savant Specification 1.0” which isavailable by activating a link on the web page identified in thissentence; and a 48 page document dated Sep. 15, 2003 entitled “PLM CoreSpecification 1.0” which is available by activating a link on the webpage identified in this sentence; the entire disclosure of each of whichis incorporated herein by reference in its entirety.

In brief, EPC is a tagging technology that provides the capability toidentify a very large number of objects in a unique manner. EPC uses adigital identifier having 96 bits. Therefore, EPC in principle canidentify 2⁹⁶ objects uniquely, or 7.92281625142643 E+28 objects (thatis, at least 79,228,162,514,264,300,000,000,000,000, or somethinggreater than 79 billion billion billion objects). The EPC tag is capableof being written to more than once. Therefore, an EPC tag can alsoinclude information, possibly in encoded form, about the objectassociated with the EPC tag, if fewer than all the 96 bits are used toidentify the EPC tag and its associated object. Alternatively, anadditional memory can be provided, of whatever convenient size, forstoring information in association with the object. Memory sizes of atleast 64 kilobits are possible. Using technology similar to conventionalsemiconductor memory, optical memory, or magnetic memory, larger memorysizes are attainable, up to megabit or gigabit capacity. Because aparticular object can be identified precisely, and can be addressedindividually, an EPC tag makes convenient the tracking, maintaining,upgrading, accounting for, and interacting with a particular objectthrough an electronic tag as compared to the previous marking methods,such as the use of static bar codes, would cause such action to bepossible only with great effort.

In some applications, pluralities of technologies including radiofrequency identification (RFID), biometrics, and bar codes, can beemployed in a single tag or reader. The use of more than one technologycan improve the security of a system, in an application such as anAutomatic Identification and Data Collection (AIDC) system. Bar code IDcards are considered more secure than photo ID cards without bar codes,and are being implemented for example in drivers' licenses issued byvarious states. In some embodiments, RFID proximity cards can provideadded security. In addition, biometric indicia such as fingerprints,voice prints, retinal scans, are examples of personal information thatcan be used in combination with bar codes or RFID technology.

The Border Security Act of 2002 mandates biometric information be usedin U.S. entry visas, and requires a biometric identifier in newpassports. Biometrics are being used in ID cards issued by some U.S.agencies, and by other countries.

RFID technology can be used for many applications in a security system.Examples include controlling access to secure areas; securing, trackingand monitoring assets such as products and equipment; and routing,screening and sorting objects, such as packages. In one example,frequent travelers across the border between the U.S. and Canada canenroll in a program that employs biometrics (i.e., fingerprinting anddigital photographs) and RFID technology in an ID card. The system whenactivated by the RFID proximity tag and the RFID reader displaysinformation about the card holder, including a photo that can be used toidentify a person as being permitted entry.

FIG. 2A illustrates exemplary embodiments of an RFID tag or SmartCardcomprising a plurality of technologies and of readers useful inapplications of the invention. As shown in FIG. 2A, an RFIDtag/Smartcard 210 and a reader 110, 230, 240 for such a tag can compriseany one or more of barcodes 214, including 1 and 2 dimensional barcodes,information encoded in magnetic stripes or magnetic ink 218, such asinformation recorded on swipe cards such as credit and debit cards andinformation printed on bank checks, biometric information 216, such as afingerprint, a facial image, a retinal scan, or a voiceprint (whether invisible form, such as a facial image, or in encoded form, such as aretinal scan or voiceprint), an embodiment of RFID technology in any ofits forms, illustrated in FIG. 2A by an antenna 212, and Smartcardtechnology, using at least two electrical contacts 213, 213′. As thoseof ordinary skill in the art will understand, the RFID and Smartcardtechnologies require the presence of electronic components not shown inFIG. 2A, but which are well known in the art. The components not showncan comprise circuitry to convert signals between analog and digitalformats (A/Ds and D/As), data processing circuitry, data storage media,receiver and transmitter circuitry, and circuitry that performsfunctions including coding and decoding information, sensing timing,amplitude and phase, formatting messages, and discriminatingfrequencies. The tag can be passive (i.e. powered by signals from anoutside source such as a reader) or active (i.e. powered by an on-boardsource such as a battery).

As shown in FIGS. 2A-2D, various readers 110, 230, 240 are employed withthe RFID/smartcard tag 210. As will be understood by those of ordinaryskill in the art, different readers can have different capabilities, andare useful as long as they can read at least one type of informationprovided by the tag being queried. For example, the reader 110 of FIG.2D and as described hereinabove can read any of RFID, Smartcard,barcode, and magnetically encoded information. In addition theelectronic camera can read other optical symbols, such as opticalcharacters adapted to be recognized by an optical character recognition(OCR) system. The reader 110 can also comprise a wireless communicationport, such as an infrared transceiver, that can send and receiveinformation using infrared communication technology. By comparison,reader 230 of FIG. 2B is a reader that comprises fewer readingmodalities, for example, only an RFID capability as indicated by loopantenna 232. In a further embodiment, reader 240 of FIG. 2C has both anRFID capability, as indicated by loop antenna 242, and a magnetic stripereading capability as indicated by slot 244, as well as buttons 246 foruse by a person to enter data or commands (as in a menu) by activatingone or more buttons 246.

FIG. 3 illustrates exemplary embodiments of an RFID converter 310. AnRFID/Smartcard tag 302 including an antenna 304 is shown in a physicalorientation such that the RFID converter 310 can communicate with thetag 302. A data processing system 390, having at least one communicationport 392, is in communication with the RFID converter 310 through atleast one communication port 350 of the RFID converter 310. In someembodiments, the RFID converter 310 comprises a plurality ofcommunication ports 350, 352, 354, 356, 358, and the data processingsystem 390 uses port 392 to communicated with a selected one of thecommunication ports 350, 352, 354, 356, 358 of the RFID converter. Thedata processing system 390 in general is not readily able to communicatedirectly with the RFID tag 302. For example, the data processing system390 may not be able to operate with the communication parametersrequired to communicate directly with an RFID tag 302. In oneembodiment, the data processing system 390 can communicate using acommunication format selected from one or more of any 802.11 variant,Ethernet (packet based communication), bar code, magnetic stripe reader,RS232, RS488, USB, smartcard, infrared, or laser line of sightcommunication. In an embodiment wherein a plurality of communicationports 350, 352, 354, 356, 358 are provided in the RFID converter 310,different ones of communication ports 350, 352, 354, 356, 358 areconfigured to operate according to different communication formats, forexample according to one of the above-enumerated formats. The RFIDconverter 310 takes RFID data from a tag and converts it into analternative format that is accessible by the data processing system 390,as will be explained hereinbelow. The RFID converter 310 is useful in aRFID or Smart tag reading and processing system. The communicationbetween the RFID converter 310 and the data processing system 390 is atleast a unidirectional communication, indicated generally by the arrows380. Described in general terms, the RFID converter 310 comprises threesections: a transponder section 320, a data manipulation section 330,and an input/output section 340.

The transponder section 320 that communicates with the tag 302 by way ofan antenna 322, using a radio frequency and data transmission protocoladapted to the requirements of the RFID tag 302. The transponder section320 in one embodiment transmits signals calculated to activate anadjacent RFID tag 302, and if no response is received, the transpondersection 320 attempts to activate a tag 302 using another frequencyand/or protocol. In some embodiments, that transponder 320 cyclesthrough a sequence of frequencies and protocols, searching for tags 302of one or more types. When a tag 302 is activated and responds, thetransponder section receives at the antenna 322 a response signal, whichis passed to the data manipulation section 330. The transponder section320 comprises the electronic components needed to generate and receiveradio frequency communications, including circuitry configured togenerate/receive one or more radio frequencies, circuitry configured tomanage signal timing, including checking for contentions and handlingconflicts, recognizing signal formatting and markers indicative of avalid response, and circuitry for controlling the transmission ofactivation signals.

The data manipulation section 330 comprises subsections. The actions ofthe data manipulation section will be described in an illustrativemanner for data that is flowing from a tag 302 to a data processingsystem 390, but it will be understood that the data manipulation section330 is capable of operating bi-directionally. In some embodiments, adata stripping and decoding subsection 332 is provided to extract theinformation provided by a tag 302 in response to an activating signalfrom the transponder 320. Based on the frequency and/or protocol for theresponse, which can be identified by a communication from thetransponder 320 to the data manipulation section 330 that indicates thefrequency and/or protocol of the activation signal that elicited theresponse, the data stripping an decoding subsection 332 can perform thenecessary manipulation to separate data from carrier signals, and canperform a decoding and organization of the data. The data so identifiedcan in some embodiments be stored in a machine-readable memory 334 forlater use. In other embodiments, the data that is decoded and organizedis immediately processed without being stored in the memory 334. Thedata manipulation section 330 comprises data processing hardware 336such as a microprocessor, a digital signal processor (DSP), anapplication-specific integrated circuit (ASIC), a programmable logicdevice (PLD), a field programmable gate array (FPGA), or other digitallogic circuit. The data processing hardware 336 controls the decodingand organization of the data. The data manipulation section 330 is inbi-directional communication with the input/output section 340information that indicates the communication format required for asignal to be communicated to or from the input/output section 340 to thedata processing system 390. In some embodiments, at least oneinstruction in the form of a computer program operating on the dataprocessing hardware 336 directs the data processing hardware 336 toassemble the data in the proper format. For communications that travelin the opposite direction, that is, from the data processing system 390to the tag 302, the data manipulation section 330 performs the inverseconversion process. In some embodiments, the data processing section 330is a monolithic integrated circuit, and in some embodiments, the dataprocessing section 330 comprises a plurality of discrete components.

The input/output section 340 in one embodiment is any one of atransmitter/receiver adapted to communicate using a format conforming toat least one of any 802.11 variant, Ethernet (packet basedcommunication), bar code, magnetic stripe reader, RS232, RS488, USB,smartcard, infrared, laser line of sight, or telephonic communication.The input/output section 340 is in communication with as manycommunication ports 350, 352, 354, 356, 358 as may be provided. In theembodiment of FIG. 3, the communication ports are shown as communicatingdirectly with the input/output section 340. In an alternativeembodiment, the input/output section 340 can be connected to a selectedone of the communication ports 350, 352, 354, 356, 358, for example byway of a multiplexer 342 (or Mux), such as a 1×N multiplexer having asufficient number N of connections to service each of N or fewer ports,where N is a positive integer. In such an embodiment, the mux 342 hassufficient numbers of parallel lines per connection to service the porthaving the largest number of parallel lines. The mux 342 isconventionally controlled by a microprocessor, such as a microprocessorthat is responsive to control by a user, by software command, or bycommand, such as interrupt driven command, from an external source. In apreferred embodiment, the input/output section provides bi-directionaldata flow. In some embodiments, the input/output section 340 providedonly unidirectional data flow, for example if data flowing in only onedirection is required, and cost savings can be realized by providinghardware having only the minimum required capability. In someembodiments, the input/output section 340 is capable of more than onecommunication format, and the input/output section 340 provides a signalto the data processing section 330 that indicates which format isintended to be used, or is operative.

By way of example, a RFID reader could extract RFID data from a shortrange RFID tag and the converter converts the data into a format forbroadcast or transmission in a local environment. The conversion of RFIDdata could be into any of a large number of end formats such as: any802.11 variant, Ethernet (packet based communication), bar code,magnetic stripe reader, RS232, RS488, USB, smartcard, infrared, laserline of sight, or telephonic communication. For the laser line of sightembodiment, RFID data could be downloaded to a reader device and thentransmitted to a laser reading terminal via direct laser transmission.In some embodiments, the conversion of RFID data would improve securityby limiting the distance over which a RFID tag would need to transmit.The improved security could for example be provided by making thesubsequent transmission of information highly directional, for exampleusing a laser, or otherwise highly secure, for example by using anencoded or spread spectrum communication protocol. In some embodiments,the RFID converter 310 is programmably reconfigured to communicate witha plurality of data processing systems 390, each data processing system390 thereby being able to communicate with RFID tags, each datacommunication system using a communication format independent ofcommunication formats used by any other data processing system 390.

FIGS. 4A, 4B, and 4C illustrate exemplary embodiments of an RFIDamplifier 410. The RFID amplifier 410 is a device that is useful toextend a range of an RFID tag or RF payment token 402, for example froma few inches, to an operating distance of some feet. The RFID tag or RFpayment token 402 can be a tag deliberately designed to have a shortrange. Short range tags improve security by making the RFID tag or RFpayment token 402 more difficult to read inadvertently. In addition, bymaking a tag's response weaker, short range tags reduce thecomputational overhead to handle “clutter” that results when each personcarries a number of RFID active devices, each having a different purposeand different encoding, but operating in one of the few allowablefrequency bands. An embodiment that uses a supermarket shoppingenvironment as an example of a use of the RFID amplifier technology isdescribed.

In FIG. 4A, a first embodiment of an RFID amplifier 410 is shown thathas either or both of a holder 412 for mechanically holding anRFID-bearing object 402, such as an RFID tag in an affiliation card (forexample, a shopping club card, a credit card issued by the owner of thestore, or a financial institution, or any form of a RF payment token asdescribed elsewhere). In some embodiments the RFID amplifier 410 alsocomprises at least one switch 414 that is actuated by the shopper. InFIG. 4B, the RFID amplifier 410 is shown attached to a shopping cart440, so that the RFID amplifier 410 travels with the shopper. In oneembodiment, a shopper uses the RFID amplifier 410 by placing his or herRFID-bearing object 402 in the holder 412. The RFID amplifier 410 readsthe information required from the RFID-bearing object 402 and transmitsthat information to one or more local points of contact 420, for use inhelping the shopper locate items that the shopper wants to purchase. Theinformation can in some embodiments be an identifier such as a number oralphanumeric string assigned to the shopper as part of setting up theaffinity card account, which information has meaning only within therelationship that exists between the shopper and the store. In someembodiments, when the shopper removes the RFID-bearing object 402 fromthe holder 412, the system ceases using the information associated withthe RFID-bearing object 402. In another embodiment, the shopperactivates the system by bringing the RFID-bearing object 402 withinrange of the RFID amplifier 410 and activates the switch 414 totemporarily store the information read from the RFID-bearing object 402in a temporary memory 415 in the RFID amplifier 410. The temporarymemory 415 location is fixed, so storing the information read from theRFID-bearing object 402 overwrites any information that may have beenpreviously entered therein. The shopper can put the RFID-bearing object402 away at that time. When the shopper again activates the switch 414,the stored information read from the RFID-bearing object 402 in atemporary memory 415 in the RFID amplifier 410 is deleted, oralternatively is overwritten with random information, and the RFIDamplifier 410 is ready for use by another. In another embodiment, whenthe RFID amplifier 410 is moved past a specific area, such as anentry/exit door of the store, it is subjected to a signal that causesthe temporary memory 415 used for storing information read from anRFID-bearing object 402 to be rewritten with random information, or tobe erased. In other words, when the shopper takes his or her purchasesout to his or her vehicle using the shopping cart 440, the informationfrom the RFID-bearing object 402 of the shopper that was stored in thetemporary memory 415 of the RFID amplifier 410 is automatically erasedor otherwise overwritten. In some embodiments, rather than a mechanicalswitch, the system is activated by proximity such that once a RFIDbearing object 402 is recognized, an association between the RFIDbearing object 402 and the RFID amplifier 410 is established and this ismaintained until the shopper moves away from the RFID amplifier at whichtime all personnel information is erased from memory 415. The amplifiercan also be configured so that that the RFID-bearing object 402 has tobe sufficiently removed from the RFID amplifier for more than a minimaltime period, for example 10 seconds, thereby allowing the shopper towalk to a nearby counter for assistance or to pick an item off a shelf.In this fashion there is no need for the shopper to let the RFIC bearingobject 402 out of their possession until the shopper has completedshopping. The utility of erasing the temporary memory 415 of the RFIDamplifier 410 is several-fold: the information of the holder of theRFID-bearing object 402 is maintained private; a subsequent user of theshopping cart 440 having the RFID amplifier 410 attached thereto is notmistaken for an earlier user; and the space allocated in the dataprocessing system of the store for handling the needs of a shopper whohas departed can be deallocated and reused for new shoppers who arrivethereafter.

In some embodiments, the RFID amplifier 410 can further comprise avisible or tactile display 416 and/or an audible signaling device 418,such as a speaker, that are used to inform the shopper of informationthat the shopper has requested or may find useful. In some embodiments,the display 416 comprises a touch screen and/or the audible signalingdevice 418 comprises a microphone, providing the shopper abi-directional communication path to the data processing system. A localpoint of contact 420 in some embodiments is in bi-directionalcommunication with a data repository and data manipulation system, suchas a local financial transaction system 120 or a central financialtransaction system 130. When the activated RFID amplifier 410 is broughtwithin range of a local point of contact 420, the RFID amplifier and thelocal point of contact 420 exchange information, for example using shortrange radio communication, such as a WiFi system. The RFID amplifier 410comprises a suitable transponder 425 for performing such communications.

The RFID amplifier 410 includes a data processor 442 that is responsiveto commands from the shopper, which commands are asserted by any of avoice command, an activation of a switch such as 414 in response toinformation displayed or announced to the shopper, or to a command thatthe shopper has previously caused to be entered into the data processingsystem, for example, the entry of a shopping list by filling out a form,such as an interactive HTML form accessible through a web site of thestore. For example, if a shopper enters a list via a web site, theshopper will be identified with the list, and the presence of thecorresponding RFID bearing object 402 in the vicinity of the RFIDamplifier 410 can cause the RFID amplifier 410 to communicate viatransponder 425 to download a copy of the list. When the local point ofcontact 420 communicates with the RFID amplifier 410, the location ofthe shopper can be ascertained within a small radius, and informationcan be provided to the shopper to make the shopping experience morepleasant, quicker, and more efficient. For example, using the shoppinglist submitted by the shopper, and an indication that the shopper wishesto shop efficiently, the store's data processing system can suggest arouting to the shopper that is the most direct path through the storethat the shopper needs to follow to collect all of the desired items,and can direct the user by visual or aural prompts. The shopper canproceed to the item of interest. When the shopper takes one or moreunits of the item of interest, a tag 430, such as an RFID tag or an EPCtag, attached to each unit interacts with the data processing system,for example by way of the RFID amplifier 410 or by way of the localpoint of contact 420, to inform the data processing system. The dataprocessing system can then prompt the shopper to the next item. Theshopper can also be made aware of specific sales or special offers thatare associated with specific items on the shopping list, or that thecentral units knows from history are of potential interest to theshopper.

If the shopper decides to delete an item from the shopping list, theuser can respond to the system by canceling the item when the prompt isprovided, and the system then calculates the path to the next item onthe list. If the shopper elects to browse, the shopper can issue acommand to pause the prompting by the data system. The shopper canresume the prompting at any later time by canceling the pause command.The data system identifies the location of the shopper from theinteractions of the RFID amplifier 410 with local points of contact 420,for example from the most recent contact, and provides prompts based onthe shopper's location and interests. In other embodiments, the dataprocessing system can provide prompts based at least in part on theshopper's expressed preferences, including shopping lists and purchasinghistory, about items on sale or items typically associated with itemsthat the shopper has already selected. For example, a shopper who hasselected a container of corn chips might be prompted that the dips andthe salsa are to be found in a particular location.

FIG. 4C shows one embodiment of a transaction terminal 450 comprising aRF I/R 114 that can be used to facilitate the purchase of goods by aconsumer. The transaction terminal 450 shown is attached to a shoppingcart 440 and can be used to record information regarding the items thathave been selected by a consumer. These items can be ones about which aconsumer desires additional information or items that a customer desiresto purchase. The transaction terminal 450 can also be used to completethe financial aspects of the purchase. In one embodiment, as a consumercollects goods and places them in the shopping cart 440, the RF I/R 114reads the RFID tags 430 on goods and adds them to a running total. Inone embodiment, the running total including a description of the goodsand the number of each particular item is presented on a display 455 ofthe transaction terminal 450. In a further embodiment, to ensure thatthe transaction terminal 450 does not erroneously record goods remainingon the shelves as purchased, the RF I/R 114 can be configured such thatthe goods must each be brought into close proximity with the RF I/R 114.

If instead of purchasing an item, a customer simply desires additionalinformation regarding an item such as promotions available, the locationof related items, recipes using the item, warranties or additionaltechnical information, and/or any product related material targeted tothe customer or selected by the items manufacturer or by the store, thecustomer can change the operation of the transaction terminal 450 from apurchase mode to a information mode. As described above, the additionalinformation can also be generated based on the customer's location sothat, for example, promotions for items are presented based on thecustomer's proximity to those items. In one embodiment, the informationmode causes the desired information to be presented on the display 455.In another embodiment, the transaction terminal 450 is in communication,for example via wireless network, with a backroom or remote system via,for example, one of the local point of contacts 420. In one embodiment,the backroom or remote system sends electronic mail to the customerregarding promotional or product related information for a product inresponse to a user interaction with the transaction terminal. In anotherembodiment, the information from the transaction terminal 450 regardingthe item of interest is used to send promotional or related materials tothe customer via regular mail. For both the electronic and the regularmail correspondence the customer's specific information, such as his orher physical or electronic address, can be accessed directly from theRFID-bearing item 402 or from an account associated with theRFID-bearing item 402. In another embodiment, product relatedinformation is also displayed to the customer while the transactionterminal 450 is in purchase mode. In this embodiment, the display 455can simultaneously or alternatively present the running total for theselected items with the promotional, customer location, or productrelated information. In another embodiment, promotional or productrelated information can be sent to a customer in response to a customerplacing his or her RFID-bearing object 402 in close proximity to an RFenabled in-store promotion.

In another embodiment, as part of the purchase mode of the transactionterminal 450, each RFID tag 430 on a purchased item can be disabled oncerecorded for purchase and the purchase is completed. In one embodiment,the disablement is achieved by exposing the RFID tag 430 to a dose ofelectromagnetic radiation strong enough to permanently incapacitate atleast a portion of the electric circuitry in the RFID tag 430. Inanother embodiment, the RFID tag 430 is disabled by having informationwritten to the RFID tag 430, such as an indication that the item hasbeen paid for at a specific location and time. When a consumer exits theshopping establishment, a exit sensor apparatus determines whether anyitems in the shopping cart 440 are still active and have not, therefore,been purchased. In another embodiment to help ensure that all itemsremoved from the store have been purchased, an alarm will sound uponexit if the transaction terminal 450 attached to the shopping cart 440does not indicate receipt of proper payment either from a RFID-bearingobject 402 or a payment authorization from a point-of-sale device, suchas a cash register. In an alternative embodiment, the exit sensorapparatus has a RF I/R 114 that determines the items in the shoppingcart 440 and compares them with the items indicated as purchased by thetransaction terminal 450. In one embodiment, the purchase of the goodsis completed by a consumer's interaction with the transaction terminal450, such as signing and transmitting authorization information.Typically this interaction would take place prior to the consumerencountering the exit sensor apparatus. In another embodiment when theconsumer provides his or her payment information, such as a RF enabledpayment token, a standard magnetic stripe credit card, store card, debitcard, ATM card or the like the transaction terminal 450 determines apreapproved spending limit. In various embodiments, a preapprovedspending limit is determined by a vendor (e.g., a limit for a storecard), by a consumer's predefined transaction limit as specified by theconsumer (e.g., a daily limit on an ATM card), or by the financialinstitution issuing the consumer's payment instrument or token (e.g., acredit limit on a credit card, or a limit on a debit card based on anaccount balance). In alternative embodiments, the preapproved limit isbased on the identity of the payment instrument or token so that, forexample, a VISA™ card has a first transaction limit whereas a storespecific card, such as a loyalty card, has a different limit. Inalternative embodiments the transaction terminal 450 can be replacedwith alternative computing devices of arbitrary form factors such ascell phones, personal data assistants, portable data terminals(discussed in more detail below), or other devices that can be affixedto the shopping cart 450 or provided by the store.

FIG. 4D shows an enlarged perspective drawing of one embodiment of thetransaction terminal 450 of FIG. 4C. In various embodiments, thetransaction terminal 450 can be one of the Transaction Team™ 8870 ImageKiosks, 8810 or 3101 Transaction Terminals, or 1500 Signature CapturePads available from Hand Held Products, Inc. of 700 Visions Drive, P.O.Box 208, Skaneateles Falls, N.Y. constructed in accordance with theinvention. In operation the transaction terminal 450 may be adapted forreading card information, for secure receipt of personal identification(PIN) information, for signature capture, for secure interactivecommunications and numerous other functions.

The transaction terminal 450 includes a touch screen 455, a stylus 460,an indicator 465, an information message 470, and an integrated RFIDcard reader and decoder 475. In some embodiments, the transactionterminal includes a biometric reading device such as a fingerprintscanner, which can be implemented using a touch-sensitive device or animaging device that records the details of the biometric information.According to the invention, the integrated RFID card reader and decoder475 can be replaced or combined with other devices such as thoseperforming the functionality of image, smartcard, or biometric readingand decoding. The touch screen 455 and the stylus 460 are used as userinterfaces to provide information to and receive information from auser/customer. The touch screen 455 includes a display and a touch padoverlay and among other functions serves as a virtual keypad andsignature capture platform. A card 480 that is processed by the RFIDcard reader and decoder 475 may be, for example, a credit card, a debitcard, a customer loyalty card, an electronic benefits card, acompany-sponsored benefits card, an identification card or the like thatis RFID enabled. In addition to RFID capacity in one embodiment, thecard 480 can include traditional payment technology such as a magneticstripe and the RFID reader and decoder 475 can be replaced with a readerand decoder capable of reading and decoding both RFID and magneticstripe information.

Security for the transaction terminal 450 is facilitated by theindicator 465 and the information message 470. In operation theindicator 465 is made responsive to a changing encryption mode signal sothat the indicator 465 is active only when an encryption routine iscalled. Still further, in accordance with the secure information entrysecurity feature, in one embodiment an information message 470 isdisplayed on or about the transaction terminal 450 or visible by acustomer/user of the transaction terminal 450 that informs thecustomer-user that the customer/user should enter secure, e.g., PINinformation, only if indicator 465 is active. Information message 470 ispreferably substantially permanently affixed to the transaction terminal450 so that an unscrupulous party cannot easily remove or destroy themessage 470.

In alternative embodiments the transaction terminal 450 can be of analternative form factor designed to fit on different portions of theshopping card 440 or another customer shopping device such as a basketor trolley. With respect to the shopping cart embodiments, alternativelocations for a transaction terminal with a different form factor suchas a relatively thin profile include vertical placement on the interioror exterior of one of the sides of the cart.

FIG. 5 illustrates an exemplary embodiment of an RFID add-on readerdevice 510 for use with an existing reading device 520 to provide thesupplemental capability of reading RFID signals. The RFID add-on readerdevice 510 comprises a connector 512 including a plurality of electricalconnections 513, a transponder 514 for activating an RFID tag and forreceiving the response from an RFID tag, and an optional port 516. Inthe embodiment shown in FIG. 5, the existing reader device 520 is a barcode reader, such as a HHP Model IT4600 2D bar code scanner. Theexisting reading device 520 can be any one or more of an optical imagingdevice 522, such as an electronic camera or a similar CCD or CMOSimaging array, for example for reading barcodes; a magnetic symbolreading device 524; an electrical connector 526 having sufficientelectrical contacts to communicate electrically with an integratedcircuit card (such as an IC card, a “Smart Card,” a PCMCIA card, a PCcard); and a microprocessor 528 in electrical communication with each ofthe optical imaging device 522, the magnetic reading device 524, theelectrical connector 526 and with a memory 527 associated with themicroprocessor. In the embodiment shown, the RFID add-on reader device510 comprises a connector 512 in the form of a PCMCIA card that connectsto a PCMCIA slot 526 in the existing reading device 520. In otherembodiments, the connector 512 is configured as a USB connector, anRS232 connector, or another conventional connector that connects to anexisting port in the existing reading device 520. In another embodiment,the RFID add-on reader device 510 comprises an optional port 516 that isequivalent to the existing port in the existing reading device 520, sothat the RFID add-on reader device 510 can be interposed between theexisting reading device and a device that would normally be connected tothe existing reading device using the existing port. The RFID add-onreader device 510 comprises all of the necessary hardware and softwarefor performing the RFID activating and reading operations, as describedhereinabove. Software operating on a microprocessor 511 in the RFIDadd-on reader device 510 controls the transmission and reception ofinformation to the existing reading device 520 and to the system withwhich the existing reading device 520 communicates, including suchmatters as timing, formatting, and signal management. The RFID add-onreader device 510 provides the ability to read RFID tags, and to writeto RFID tags as appropriate, in a manner that is transparent to theuser. To the extent that the existing reading device 520 will supportthe connection of the RFID add-on reader device 510, the performance ofthe RFID add-on reader device 510 is equivalent to the performance of areading device such as device 110 that includes an RFID reader asoriginal equipment. In some embodiments, the connector 512 is a wirelessconnector such as an RF or a IRDA connector.

FIG. 6 illustrates exemplary embodiments of operating methods of RFIDreaders controlled by software generally designated 600. As will beunderstood by those of ordinary skill in the software arts, there are ingeneral many different ways to prepare computer instructions in the formof software that perform particular functions. Accordingly, the presentdiscussion is limited to a high level discussion of how the operatingmethods of RFID readers are controlled. Explicit coding examples are notgiven; those of ordinary skill will understand how to write instructionsthat control the necessary tasks. The methods of operation will bediscussed in broad categories, including procedures for setting up,maintaining, upgrading, and handling fault conditions in the RFID readersystem, procedures for communicating with RFID tags, procedures forcommunicating with data processing systems, and procedures forcommunicating with a user. In addition, software is used to controlfeatures of the system relating to security, including formatting anddecoding data and messages according to security protocols.

FIG. 6 shows a process that begins at oval 610 labeled “Start.” As afirst operation, the reader is tested to confirm proper operation, asindicated by the decision diamond 615 labeled “Test Reader for Faults.”If the reader fails the test, as indicated by the arrow marked “Fail,”the process ceases, as indicated by the oval 612 marked “End.” If thereader passes this test, another test takes place as indicated by thearrow labeled “Pass”, namely a check of the communication of the readerwith a data processing system, as indicated by the decision diamond 620,labeled “Test Communication with Data Processing System.” If the readerfails the test, as indicated by the arrow marked “Fail,” the processceases, as indicated by the oval 612 marked “End.” As will be apparentto those of ordinary skill in the computer programming arts, the orderin which tests 615 and 620 occur is irrelevant, because the operationwill cease if either test fails, and the operation will proceed only ifboth tests have acceptable outcomes.

If both tests 615 and 620 pass, operation continues as indicated by box625, labeled “Ready for operation,” which denotes that the RFID readeris properly operating and is programmed in a default mode, in whichreading and communication operations are programmed for operation. Asindicated at box 630, the reader operates in a cyclical mode, comprisinga sequence of steps in a loop. The cyclical steps include: 1. an attemptto activate an RFID tag; 2. an attempt to read a response received fromthe RFID tag, if any response occurs; 3. if no response is received, theRFID reader optionally repeat steps 1 and 2 for another RFIDfrequency/protocol; 4. in parallel with steps 1-3, the reader attemptsto read information consistent with another reader technology asenumerated hereinabove, for example, barcode or magnetic stripe; and 5.if a data format is detected in either steps 2 or 4, the processproceeds to the next step at box 635; or else, the process loops back tostep 1, and the cycle continues. The attempt to activate an RFID tag canalso involve writing to the tag. As indicated at box 635, the readerrecovers data from the RFID or other symbology that has been read. Atbox 640, the reader prepares the data for transmission to dataprocessing system, for example by formatting a message, and transmitsthe recovered data to the data processing system. Upon transmitting theinformation, the reader loops back to the cyclic operation indicated atbox 630. As indicated at box 650, a command to change the operating modeof the RFID reader can be sent from an external source, such as a useror a data processing system, and can be implemented at any point in theprocess from box 625 through box 640. The command to change theoperating mode can for example involve an interrupt, which can halt anycomputer process having lower priority, as is well known in the computerprogramming arts. As indicated at box 660, a command to halt theoperation of the RFID reader can be sent from an external source, suchas a user or a data processing system, and can be implemented at anypoint in the process from box 625 through box 640. The command to haltoperation of the RFID reader can for example involve an interrupt, whichcan halt any computer process having lower priority, as is well known inthe computer programming arts.

Referring to FIG. 7A, an embodiment of the local financial transactionsystem 120 in which the point of sale terminal 122 is a PC based cashregister is shown. The financial transaction system 120 includes thedisplay 124, a keyboard 702, and the hand-held portable proximity device110. The present embodiment is particularly suited to conductingfinancial transaction in supermarkets and other retail environments inwhich a customer wishes to purchase a plurality of products 704. Each ofthe plurality of products 704 includes as product related identifiers agraphical symbol 706 and a RFID tag 708. The graphical symbol can be anyof the commonly employed one dimensional, high density one dimensional,one dimensional stacked, and two dimensional matrix codes. Also shown inFIG. 7A is a transaction card 710 that is an example of a proximitypayment token as discussed elsewhere herein. In one embodiment as shownin FIG. 7B, the transaction card 710 includes a memory 712, anelectronic circuit 714, such as an integrated circuit microprocessorCPU, for controlling the operation of the transaction card 710, and RFpayment circuitry 716 such as a RF transponder and control circuitry. Asdescribed above in operation, the RF payment circuitry 716 is typicallyinterrogated by a RF device that energizes the RF payment circuitry 716to generate a response transmission including, for example, paymentinformation such as a credit card account number. The transaction card710 can be in the form of a credit card, debit card, ATM card or anyother commercially enabling card or appropriate alternative functionalforms that may be envisioned and can additionally include, although notlimited to, graphics, symbols, text, magnetic recordings, electroniccircuitry and electrical contacts for direct electrical interaction witha proximity transaction or security system. While product relatedidentifiers above are shown and discussed with respect to a thegraphical symbol 706 and the RFID tag 708 other product relatedidentifiers including text, images, and magnetic recordings arecontemplated in accordance with the present invention.

In one embodiment, the graphical symbol 706 and the RFID tag 708 canstore complementary, redundant or separate information. For example bothof the product related identifiers 706, 708 can store the samemanufacture and product code information according to a specifiedstandard such as UPC/EAN. Alternatively in one embodiment, the graphicalsymbol 706 stores one form of product information, such as UPC/EANinformation, while the RFID tag 708 stores another form of productinformation, such as EPC information. In an additional embodiment, oneof the product related identifiers represents a product identifying codewhile the other product identifier represents supplemental informationrelated to the product such as discounts or coupons available. In afurther embodiment, the supplemental information is accessed in responseto a specified interaction with the transaction card 710. For example,if the transaction card 710 stores information that the current customeris a member of a store membership or other benefits program, then theproximity transaction system directs the proximity device 110 to querythe RFID tags 708 as to discounts or promotions available. In a medicalenvironment, such as a medicine distribution system, the RFID tag caninclude information about incompatibilities with other medications sothat a warning is issued if a selected medication that should not beused with the medication is suggested for use. In some embodiments,safety checks for medical incompatibility are implemented.

In an alternative embodiment, the graphical symbol 706 is a barcodesymbol and the RFID tag 708 stores product expiration information, suchas a critical expiration date for a medication. In addition, temperaturesensors can be used to monitor that the medication or product has beenproperly stored, for example that a maximum or a minimum temperaturehave not been exceeded. In an additional embodiment, the RFID tag 708stores state data indicative of the conditions having been experiencedby the product 704. The state data stored in the memory 712 can bestored in the memory 712 based on a number of criterion including settime intervals, set physical locations, set changes in environment. Thestate data can be generated by devices on the RFID tag 708, such as atemperature, humidity, or similar environmental reading devices. Thestate data can also be generated by a separate device that broadcasts tothe RFID tag 708, or to a plurality of RFID tags 708 such as would befound in a shipping container or a warehouse, data representing thecurrent environmental state.

Whether the proximity device 110 reads one or both of the productrelated identifiers 706, 708 can be manually determined by the operatoror automatically configured as part of the operation of the local pointof sale terminal 122. As part of the automatic operation, the proximitydevice can be configured to determine the appropriate product relatedidentifier 706, 708 by, for example, reading both identifiers 706, 708and determining the one containing product code information.

In one embodiment of the invention, the local financial transactionsystem is able to process information recorded on a graphical symbol 706or the RFID tag 708 attached to products and payment information in anarbitrary order. For example, as part of the purchase of the products704 in one embodiment an operator of the local point of sale terminal122 uses the proximity device 110 to read either the graphical symbol706 or the RFID tag 708 for the products that are presented forpurchase. After the products 704 have been read, the operator uses theproximity device 110 to read financial data from the transaction card710 to complete the purchase of the products. The sequence of items readby the proximity device 110 can be represented as:

-   -   product, product, product, transaction card.        Alternatively, as part of the purchase of the products 704, the        operator can read the transaction card either before during the        reading of the products. The sequence of items read by the        proximity device 110 in these cases can be represented,        respectively, as:    -   transaction card, product, product, product, or    -   product, product, transaction card, product.        As one of ordinary skill will recognize, although reference is        made to products, the systems and methods of the invention are        equally applicable to services, or a mixture of products and        services. In addition, the term product as used in the three        sequences illustrated above can represent plural examples of the        same product, or examples of a plurality of different products        in any combination.

In one embodiment, the process of reading products and paymentinformation in an arbitrary order involves the proximity device 110automatically determining the nature of the item presented for reading.For example, based on an analysis of the data received, the proximitydevice can determine that the information read from an item correspondsto a UPC product code. As such the data is passed to a routine thatdetermines the price of the item in a look-up table and adds it to arunning total of the items being purchased. Alternatively, the proximitydevice 110 can determine that the data received corresponds to a bank orcredit card account information. As such, the data is passed to aroutine that requests authorization to charge the corresponding accountonce a total has been determined for all of the products beingpurchased.

In one embodiment the invention features a dual mode bar code and radiofrequency identification reader that reads bar codes and radio frequencyidentification tags in an arbitrary order. The dual mode bar code andradio frequency identification reader comprises an optical energycollection device that receives optical energy reflected from one ormore bar codes on one or more targets and converts the optical energyinto one or more electronic representations of the one or more barcodes. In some embodiments, the optical energy collection device is asolid state device. The dual mode bar code and radio frequencyidentification reader also comprises interrogation reception electricalcircuitry that energizes with radio waves a passive transponder in thetarget to transmit radio signals containing customer financialinformation. The interrogation reception electrical circuitry convertsthe radio signals into an electronic representation of the customerfinancial information. The financial information can include an accountidentifier, an identifier of a holder of the transponder, informationabout a financial condition of the account or of the holder of thetransponder, information about the financial practices of the holder ofthe transponder, and information about a spending limit. The dual modebar code and radio frequency identification reader further comprises acentral processing unit in electrical communication with the solid stateenergy collection device and the interrogation reception electricalcircuitry. Additionally the dual mode bar code and radio frequencyidentification reader comprises a computer memory in electricalcommunication with the central processing unit and a decoding softwaremodule stored in the computer memory. The decoding software module whenexecuted by the central processing unit automatically discriminatesbetween and decodes the electronic representation of the customerfinancial information and the electronic representations of the one ormore bar codes. In operation when the central processing unit isexecuting the decoding software module, the dual mode bar code and radiofrequency identification reader can process the electronicrepresentation of the customer financial information and the one or moreelectronic representations of the one or more bar codes in an arbitraryorder.

In one embodiment of the invention, the memory 712 stores informationrelated to bearer of the transaction card 710. Non-limiting examples ofthe data contained in the memory 712 include information related tomultiple financial accounts such as a plurality of credit card and bankaccounts and personal information related to the bearer such as thebearer's social security number and/or driver's license number, medicalinformation such as allergies or specific medical conditions, securityinformation such as access codes or biometric information such asfingerprint or iris scan information, etc. In alternative embodiments ofthe transaction card 710, the plurality of information related to thebearer is stored in a combination of the available formats discussedabove. For example, credit card information can be stored in magneticformat, medical information as a graphical symbol, and securityinformation in the memory available for RFID interrogation.

In one embodiment of the invention the transaction card 710 is used toenable an optimized financial transaction. The optimized financialtransaction can be structured to optimize a value of one or moreparameters related to the transaction including but not limited to costand or benefits accrued to the consumer. For example as part of thecommercial transaction described above in which a customer purchases anumber of products an optimized financial transaction can includedetermining the payment method most advantageous to the customer. In oneembodiment, a transaction routine executed by the local financialtransaction system 120 queries the transaction card 710 to determine thefinancial accounts available for payment. In determining which of theavailable accounts should be used for payment, the transaction routinecan search either local or remote databases. For example, thetransaction routine can search for discounts associated with theproducts if payment is completed with a specified account. For example,the transaction routine can determine that the customer holds a creditcard account with the retail establishment selling the goods and that adiscount or the accrual of benefit points is available if the retailestablishment account is used. Alternatively, the transaction routinecan check whether other benefits, such as frequent flier miles, areavailable if another account is used. In an alternative embodiment, thetransaction routine can determine that the purchase of the currentproducts will allow the customer to pass a minimum level necessary toqualify for a particular promotion. In one embodiment, the transactionroutine considers all of the products 704 purchased and all of theaccounts available as part of determining the most advantageous paymentapproach for the customer. In selecting the account to utilize, thetransaction routine can be automatically configured to chose accordingto specified parameters, to present information to the customer to makethe selection, or to query a transaction card 710 that has beenconfigured to provide a set of preferences to be used in selectingaccounts. For example, the preferences can indicate that a set of creditcards is to be used in a specified order as certain limits are reachedfor each corresponding account. Such a set of preferences can beimplemented by maintaining a list of preferences in software, either onthe transaction card 710 itself, or in a database that is queried uponpresentation of the transaction card 710 for a purchase.

One embodiment of the invention features a point of sale financialtransaction bar code and radio frequency identification system. Thepoint of sale financial transaction bar code and radio frequencyidentification system comprises an optical energy collection device thatreceives optical energy reflected from one or more bar codes on one ormore targets and converts the optical energy into one or more electronicrepresentations of the one or more bar codes. The point of salefinancial transaction bar code and radio frequency identification systemalso comprises interrogation reception electrical circuitry thatenergizes with radio waves a passive transponder in the target totransmit radio signals containing customer financial information. Theinterrogation reception electrical circuitry converts the radio signalsinto an electronic representation of the customer financial information.The point of sale financial transaction bar code and radio frequencyidentification system further comprises a central processing unit inelectrical communication with the solid state energy collection deviceand the interrogation reception electrical circuitry. In addition thepoint of sale financial transaction bar code and radio frequencyidentification system comprises a computer memory in electricalcommunication with the central processing unit and first, second andthird software modules stored in the computer memory. The first softwaremodule when executed by the central processing unit automaticallydiscriminates between the electronic representation of the customerfinancial information and the electronic representations of the one ormore bar codes. The first software module also decodes the electronicrepresentation of the customer financial information into customerfinancial data and the electronic representations of the one or more barcodes into decoded bar code data. The second software module whenexecuted by the central processing unit communicates the decoded barcode data to a point of sale device, such as a cash register ortransaction terminal. The point of sale device determines a transactionamount from the decoded bar code data. The third software module whenexecuted by the central processing unit communicates the user financialinformation to the point of sale device for transmission to a financialinstitution for authorization to apply the transaction amount against auser account.

In one embodiment of the point of sale financial transaction bar codeand radio frequency identification system, the target is a credit cardand the user account is a credit card account. In another embodiment ofthe point of sale financial transaction bar code and radio frequencyidentification system, the target is a debit card and the user accountis a bank account. In a further embodiment of the point of salefinancial transaction bar code and radio frequency identificationsystem, the central processing unit executing the first software modulecan process the electronic representation of the customer financialinformation and the one or more electronic representations of the one ormore bar codes in an arbitrary order.

In another embodiment, the memory 712 is used to enhance the security ofusing the transaction card 710 by employing it to store detailspertaining to a particular transaction. For example in one embodimenteach proximity device 110 is assigned a unique identifier. As part ofinterrogating a transaction card 710, a proximity device 110 transmitsits identifier to the transaction card 710. The transaction card 710then stores information regarding each transaction in the memory 712. Inone embodiment, this information includes the date, time and amount ofeach transaction as well as the unique identifier for each correspondingproximity device 110. In one embodiment, the information regardingtransaction stored in the memory 712 is accessed if disputes orquestions exist about one or more transactions. In another embodiment,the transaction information is periodically used to confirm activity bythe transaction card 710. For example, in one embodiment the bearer ofthe transaction card 710 places the transaction card 710 in averification device that automatically downloads the transactioninformation. This information can be immediately presented to the bearerfor review and/or confirmation of transactions. In another embodiment,the information is stored for future reference and/or retrieval.

Referring to FIG. 8A, a proximity device configuration system 800 isshown. The proximity device configuration system includes a hand-heldproximity device 110 and a RFID configuration tag 804. In operation theconfiguration of the hand-held proximity device 110 can be accomplishedmanually or automatically. According to manual operation, an operatorbrings the hand-held proximity device 110 to within a specified distanceof the RFID configuration tag 804 and actuates a configuration routine.The configuration routine interrogates the RFID configuration tag 804for the configuration data stored on the card and uses this to configurethe appropriate settings for the hand-held proximity device 110. In oneembodiment the operator determines the settings to be configured and inanother embodiment, the settings are determined in response to datacontained in the RFID configuration tag 804. In automatic operation, thehand-held proximity device 110 continuously or at set intervalstransmits interrogation signals to determine whether any RFIDconfiguration tags 804 are within the device's field of operation. IfRFID configuration tags are present, then the configuration occursautomatically. In one embodiment the hand-held proximity device 110 isin communication with a transaction terminal, a portable data terminal,a cash register or the like that is equipped with a RFID configurationtag 804. To establish proper operation, the RFID configuration tag 804is interrogated to provide details concerning the device to which thehand-held proximity device 110 is being attached. In one embodiment, theconfiguration details include a manufacturer code and a product code,such as a UPC code, that the hand-held proximity device 110 can use toaccess a local or a remote configuration database to provide the set ofappropriate configuration settings. Although the configuration processis described above with respect to the hand-held proximity device 110,other proximity devices such as transaction terminals, portable dataterminals, and the like are contemplated in accordance with theinvention. In alternative embodiments, the proximity device 110 isincluded in a computer peripheral such a monitor, a keyboard, a printer,a scanner, and the like. According to the invention, the configurationof the computer peripheral to interface properly with a computing deviceto which it is attached can occur automatically in response to theproximity device interrogating the RFID configuration tag 804 for theconfiguration settings. In various embodiments, the computing device isa personal computer, a laptop computer, a PDA, a transaction terminal, aportable data terminal and the like.

Referring to FIG. 8B an embodiment of a system 820 for storing andupdating device related information is shown. The system 820 comprises aportable data terminal 822 that is in communication with a plurality ofperipheral devices. The portable data terminal 822 comprises a display826 and one or more interface mechanisms 828. The peripheral devicesshown comprise a hand-held proximity device 110 and a receipt printer830. The receipt printer 830 comprises a display 832, interfaceindicators 834, and interface mechanisms 836. Attached to the portabledata terminal 822, the hand-held proximity device 110 and the receiptprinter 830 are RFID device information tags 838. In one embodiment, theRFID device information tags 838 contain device specific informationsuch as warranty and service record information. In operation thewarranty and service information can be read by the hand-held proximitydevice 110 or another proximity device 110. In one embodiment, thesystem 820 is used by a technician to determine part and manufacturingdetails as well as the status of any available warranties or servicerecords related to the device. In one embodiment, the technician is arepair technician attempting to repair a malfunctioning device. Inanother embodiment, the technician is a service technician who may bedetermining whether the device is due for regular maintenance. In analternative embodiment, the RFID device information tags 838 can beattached to any device requiring device specific records such aswarranty, service, and/or manufacturing/product details. Such devicesinclude but are not limited to ground, air and water transportationvehicles such as automobiles, trucks, boats, and airplanes and theircomponents; manufacturing and production devices and apparatuses;electronic equipment such as televisions, radios, compact disk players,computers, printers, and the like; and appliances such as refrigerators,stoves, dishwashers, washer/dryers and the like for use in domestic orcommercial applications.

One embodiment of the invention related to the automatic configurationof devices by items used with those devices is shown with respect toFIG. 8C. Specifically, FIG. 8C shows a food item 808 with an attachedRFID instructions tag 812 that is placed in a cooking device 816, suchas a microwave or a conventional oven. According to the invention, thecooking device 816 includes a proximity device 110. In operation tocook, heat or other wise process the food item 808, an operator of thecooking device 816 actuates a process routine that includes theproximity device 110 interrogating the RFID instructions tag 812 todetermine the nature of the food item 808 and/or the processinginstructions. In one embodiment, the instruction details include amanufacturer code and a product code, such as a UPC code, that theproximity device 110 and/or the cooking device 816 can use to access alocal or a remote configuration database to provide the properprocessing instructions. In an alternative embodiment, the RFIDinstruction tag 812 includes instructions such as the power setting ortemperature settings and time duration to be employed by the microwaveor conventional oven. Because a tag that is subjected to processing maybe destroyed in the microwave or oven, it can be used to containinformation that can be transferred to the microwave or oven prior tooperation. The information can relate to one or more processing steps.Alternatively, the tag can be removed from the product to be processedbefore processing begins, so that it can be held aside and used forproviding instructions for processing that requires multiple steps.

In another embodiment as shown in FIG. 8D, a RFID information and accesstag 816 is included in a bracelet 816 a, a ring 816 b, or a similarportable item conveniently attachable to a person, such as a wristwatch,a belt, a necklace, or an article of clothing. In a medical environment,the bracelet 816 a can be interrogated by a health professional wishingto know the certain medical data. In an alternative embodiment, thebracelet 816 a includes an identifier that is used to access a local ora remote database, by for example wireless communication, for personalor medical records. In another embodiment related to the operation ofmedical devices, the RFID information and access tag 816 can beinterrogated by a medicine dispensing apparatus prior to the provisionof drugs to a patient. The data provided by the interrogation can beused to ensure that the proper medicine and dosage is being delivered tothe appropriate patient, and to provide warnings about improper uses ofmedications or contraindications. Similarly, the bracelet can functionas a medical alert bracelet so that if a patient in a hospital orelsewhere is incapacitated, primary medical information such asallergies and blood type can still be readily accessed.

Referring to FIGS. 9A, 9B, 9C, and 9D, embodiments of apparatuses thatprovide security for payment tokens, or other RFID tags, are shown. Inthe embodiment shown in FIG. 9A, the payment token is a transaction card710 as described above. The security apparatus 900 comprises anelectromagnetically conductive case (or Faraday enclosure) 904 that isdesigned to shield the transaction card 710, and in particular, the RFpayment circuitry 716 of the transaction card 710, from externalelectromagnetic signals. The electromagnetically conductive case 904 insome embodiments is an envelope or pocket comprising aluminized plasticor mylar. As those of ordinary skill will understand, other materialsthat allow the provision of a suitable Faraday enclosure can be employedas equivalents of aluminized plastic or mylar. In some embodiments, theelectromagnetically conductive case 904 covers all or substantially allof the transaction card 710 when the card is in the shielded position.In some embodiments, when the card is in the shielded position, theelectromagnetically conductive case 904 covers a portion of thetransaction card 710, for example a portion of an antenna present in oron the card sufficient to disable the operation of the transaction card710. A bearer of the transaction card 710 places the card in theelectromagnetically conductive case 904 whenever he or she wishes toensure that unauthorized readings of the transaction card 710 do notoccur.

Unauthorized readings include the actions of unscrupulous parties usinga RFID interrogation device to interrogate transaction cards 710 whilethe bearers are not aware that such interrogations are taking place.Such readings could occur in environments where the public is commonlyin close proximity, for example on public walkways, on publicconveyances, or in stores. The present invention prevents unauthorizedreadings by ensuring that the electromagnetic signals comprising theinterrogation signal do not reach the transaction card 710. Further,even if a powerful interrogator were employed, the electromagneticallyconductive case 904 would prevent any response signal from thetransaction card from being transmitted back to the interrogatingdevice. When the bearer wishes to use the transaction card 710, thebearer moves the electromagnetically conductive case 904 so as to exposethe transaction card 710. In some embodiments, as shown in FIG. 9B, theelectromagnetically conductive case 904 is designed to slidably engagethe transaction card 710, and to be prevented from coming free of thetransaction card 710 by one or more detents 719, which can be sprungstructures. As shown in FIG. 9B, the electromagnetically conductive case904 is designed to slide in the directions indicated by thebi-directional arrow A, and is depicted in phantom drawing in a positionwhere the RF portion 716 is exposed. In some embodiments, additionalmetallization is provided at the end 750 of the transaction card 710, tocompletely enclose the RFID portion 716 within a conductive envelopewhen the electromagnetically conductive case 904 is positioned inregistry with the end 750.

Referring to FIGS. 9C and 9D, in another embodiment the payment token isa fob 920 that comprises retractable RF payment circuitry 716′. The fob920 also comprises a plunger stem 924, finger grips 928, and anelectromagnetically conducive shield portion 932. Theelectromagnetically conductive shield portion 932 includes a moveableopening 936. The fob 920 further includes a spring mechanism (not shown)that maintains the RF payment circuitry 716′ shielded within theelectromagnetically conductive shield portion 932 so that unauthorizedreadings of the RF payment circuitry 716′ can not occur. In operation,in one embodiment, when a user/customer desires to employ the fob 920 topurchase goods, the user/customer depresses the plunger stem 924 by, forexample, pushing on the plunger stem 924 with his or her thumb whileholding the finger grips 928 with her or her fingers. In one embodimentwhen the plunger stem 924 is sufficiently depressed, the movable opening936 opens and the RF payment circuitry 716′ is exposed as it is pushedout of the electromagnetically conductive shield portion 932. Onceexposed, the RF payment circuitry 716′ can then be used to conduct afinancial transaction such as purchasing goods or the like. Once use ofthe RF payment circuitry 716′ is no longer required, the user/customerreleases pressure on the plunger stem 924 thereby causing the RF paymentcircuitry 716′ to be withdrawn in to the electromagnetically conductiveshield portion 932 to prevent unauthorized readings, and movable opening936 is closed once again. In some embodiments, the moveable opening 936is optionally omitted if the electromagnetically conductive shieldportion 932 is sufficient to prevent electromagnetic communication withthe RF payment circuitry 716′ when it is retracted within theelectromagnetically conductive shield portion 932. In one embodiment,the fob 920 can be a key fob that can be attached to a key chain forease of access and use.

In alternative embodiments, security for a payment token can includemechanisms for enabling and disabling the operation of the paymenttoken. In one embodiment the transaction card 710 includes a pressuresensitive region that must be grasped firmly by a user/customer for thetransaction card 710 to be active. In one embodiment, the pressuresensitive region includes an electronic circuit that remains open, andhence inoperable, unless pressure is applied by the user/customer inwhich case the electronic circuit is closed. In one embodiment theelectronic circuit can comprise a portion of the RF payment circuitry716′, such as a portion of an antenna that must be closed before theantenna can receive or transmit signals.

Readers other than radio frequency readers for inputtingmachine-readable information are known. Sometimes, it appears to beconvenient to use data in the format of an existing reader technologybecause the existing technology is sufficiently well known, and hardwareto exploit data in the format of that technology exists in themarketplace. In such an instance, one may try to simulate the behaviorof the existing technology, so as to “piggyback” upon the existingknowledge, acceptance of the older technology, and installed base. Oneway to do so is to read the required data, and to translate it so as tosimulate the data in the format that would have been provided by theolder technology. However, there are disadvantages that such“piggybacking” introduces, including additional hardware, additionalprocessing to use the read data in the format that is to be simulated,slower overall throughput, and the risk of possibly introducing errorsduring the additional data manipulation. An additional disadvantage isthe added cost of hardware and software, of additional processing, andof error correction. While it may possibly take longer to implement andto reach acceptance, direct use of the data provided by a readertechnology in its native format is often more reliable, faster, morecost effective, and by eliminating unnecessary hardware and software,more practical to use and to maintain.

As used herein, the term “payment token” is used to denote a non-cashfinancial instrument or accepted medium of payment. Examples of paymenttokens include but are not limited to a credit or debit card, a check,scrip, a coupon, a gift check, a traveler's check, a prepaid card suchas a phone card, an ATM card, or any other medium by which a vendor canbe assured that payment has been made in advance or is reasonablyexpected to be made in settlement of a periodic statement of account. Inadditional embodiments, payment tokens can include or be included incell phones, personal data assistants, pagers, watches, or otherpersonal electronic devices of arbitrary form factor capable of beingenabled with RF or RFID circuitry to conduct commercial transactionswith, for example, transaction terminals or point of sale locations. Asdiscussed elsewhere, payment tokens including RF or RFID circuitry canalso be integrated into human attachment systems such as rings,bracelets, necklaces and the like.

It is known to use radio frequency tags and associated readers intransactions wherein the tag is a payment token issued to a user (orpurchaser) for a particular type of transaction, e.g., an RFID-basedticket restricted to be used for obtaining transportation services, oran RFID tag issued (in association with an account) by a transportationauthority, such as the FastLane™ tag issued by the MassachusettsTurnpike Authority for use on one or more toll roads, which paymenttoken is not acceptable as payment for other goods or services. Forexample, a FastLane™ transponder cannot be used to pay for travelservices requiring tickets, such as airline or bus tickets, or for anytangible goods at all.

It is also known to use proprietary radio frequency tags and associatedreaders as payment tokens for a variety of goods sold by vendors havinga business relationship with the issuer of the payment token, e.g., theMobil SpeedPass™ which can be used for the purchase of fuel and for thepurchase of goods from vendors who are affiliated with the ExxonMobilCorporation as dealers, but which payment tokens are not generallyaccepted as cash substitutes by unaffiliated gasoline dealers, nor arethey generally accepted by other unaffiliated third party vendors. Sucha payment token can be viewed as being restricted for use to conducttransactions with the issuer and its business associates. Other examplesof proprietary payment tokens are cards issued for use with a particularvendor, such as a store credit card, that is not accepted for payment bycompeting businesses, nor by unaffiliated third party vendors.

In contrast, credit or debit cards issued by banks or other financialinstitutions, which are accepted by any vendor that subscribes to theissuer's association, are viewed herein as being unrestricted. Examplesinclude cards known generally as Visa™ cards, MasterCard™, AmericanExpress™ cards, Discover™ cards, and the like, as well as cards issuedby financial arms of manufacturing or operating corporations, such asthe GM™ or AT&T™ card, which may also be affiliated with the Visa™and/or MasterCard™ financial associations.

Having provided the above outline, one can consider various features ofa transaction. One feature is whether there are restrictions on the useof a payment token for transactions with business associates of theissuer (e.g., the payment token is proprietary and may use a proprietaryencoding method or format). A second feature is whether the paymenttoken can be used to purchase substantially any good or service withoutrestriction (e.g., whether or not the encoding is proprietary such thatthe reader associated with the card fails to respond to formats otherthan that of the restricted type). Yet another feature is whether,subject to legal limitations such as patent, trademark, and copyrightissues, a purchaser can purchase a desired good or service at any vendorof his or her choice using a payment token.

As used herein, an ad libitum financial transaction is used to denote afinancial transaction which is neither a transaction using a paymenttoken issued for a particular transaction type, such as purchasingtransportation services, nor a financial transaction in which aproprietary financial token that is accepted for payment by those havinga business relationship, such as being a dealer, with the issuer of theproprietary financial token. Expressed in an alternative manner, as usedherein, an ad libitum financial transaction is one in which a purchaseris free to present a payment token issued by a first entity as paymentto a second entity for a good or service of the purchaser's election,where the first and second entities are not restricted to having anownership or dealership relation with each other, but participate withinthe financial systems generally. The prototypical ad libitum financialtransaction is a purchaser buying whatever good or service he or shedesires with cash from a vendor of his or her choosing. Examples of adlibitum financial transactions mediated with a payment token are thepurchase of goods and services as elected by a purchaser who pays with aconventional credit or debit card issued by a financial institution,with a check and a bank card, or with a prepaid gift card or coupon,wherein the purchaser can in principle use the payment token forpurchases at a plurality of unrelated vendors.

In various embodiments, the ad libitum financial transaction isconducted by a terminal and is intermediated by a payment token. In oneadditional embodiment, the terminal also comprises an image reader anddecoder for reading and decoding bar codes, symbols, graphics orindicia.

In another embodiment, an ad libitum financial transaction employs atransaction module. The transaction module comprises a radio frequencyreader module that interrogates a payment token to receive financialpayment data. The radio frequency reader module is capable ofinterrogating RFID circuits and RF payment devices such as paymenttokens. The payment token is issued by one of a first plurality ofcommercial/financial entities, such as a VISA™ credit card issued by aparticular bank. The transaction module also comprises a transactionprocessing module that is in direct communication with the radiofrequency reader module and in communication with a payment processingentity. The direct communication between the transaction module and theradio frequency reader module means that the transaction module does notinclude a translation module that translates data read from the paymenttoken into a simulation of an alternative payment data format, such asthe magnetic stripe data format, before being transmitted from the radiofrequency reader module. In one embodiment, the transaction module islocated in a commercial establishment such as a retail or conveniencestore that sells a variety of goods to the public.

In one embodiment, the commercial establishment is associated with orrun by one of a second plurality of commercial entities. According tothis embodiment, the one of the first plurality of commercial entitiesis different from the one of the second plurality of commercialentities. For example in one embodiment if the payment token was a RFenabled VISA™ card issued by Citizens™ Bank, then the commercialestablishment could be a supermarket such as Shaws™ or a gas stationsuch as a Shell™ gas station. In general a commercial establishment isany commercial environment where a payment token can be used to conducta commercial transaction such as the purchase of goods or services.

In one embodiment, the transaction module is implemented as acombination of hardware and software. In various embodiments, thetransaction module can be one of the Transaction Team™ 8870 ImageKiosks, 8810 or 3101 Transaction Terminals, or 1500 Signature CapturePads available from Hand Held Products, Inc. constructed in accordancewith the invention. In various other embodiments, the transaction modulecan be any of the IMAGETEAM™ linear or area image readers such as themodels 3800, 3870 and 4410 available from Hand Held Products, Inc.constructed in accordance with the invention. In alternativeembodiments, the transaction module can be a SCANTEAM® 5700 Hand HeldLaser Scanner, a VALUETEAM™ 3080 Contact CCD Scanner, or a SCANTEAM®3700 Fixed Mount CCD all available from Hand Held Products, Inc. andconstructed in accordance with the invention. In further embodiments,the transaction module can be any one of the Dolphin® 7200, 7300, or7400 Mobile Computers available from Hand Held Products, Inc.constructed in accordance with the invention.

In a further embodiment, the transaction module can receive operatingupdates, such as software or firm ware updates, to supplement itsoperation. In one embodiment, the updates comprise software modules thatallow the transaction module to process payment tokens issued by atleast one additional commercial entity. Frequently some commercialentities have technology or data formats that are particular to thespecific commercial entity. For example, a retailer could issue its ownpayment token such as a key fob that stored and transmitted data in aformat specific to that retailer. According to one embodiment of theinvention, the transaction module could download software that enabledit to read commercial entity specific payment tokens. In one embodiment,the downloading of supplemental software or firm ware is directed by anoperator instructing the transaction module as to the supplementalmaterial required. For example if transaction modules were installed ina retail establishment employing retailer specific payment tokens,configuring the transaction modules could include downloading orinstalling the software and/or firmware required to read the specificpayment tokens. In another embodiment, the transaction module requestssupplemental software and/or firm ware in response to attempting to reada payment token with non-standard or unfamiliar data formats. As part ofthe attempted read in one embodiment, the transaction terminal canextract information identifying the software and/or firm ware requiredto read the payment token. In another embodiment, the transaction modulecan be configured to periodically search for supplemental or updatedsoftware and/or firmware.

As used herein embodiments described employing RFID systems are intendedto cover all forms of systems that that can be interrogated with radiofrequency energy to retrieve and/or store data. For example such systemsinclude devices that in response to interrogation by specified RF energyprovide data used to complete a commercial transaction. An example ofsuch a system is a RF payment token.

Machine-readable storage media that can be used in the invention includeelectronic, magnetic and/or optical storage media, such as magneticfloppy disks and hard disks; a DVD drive, a CD drive that in someembodiments can employ DVD disks, any of CD-ROM disks (i.e., read-onlyoptical storage disks), CD-R disks (i.e., write-once, read-many opticalstorage disks), and CD-RW disks (i.e., rewriteable optical storagedisks); and electronic storage media, such as RAM, ROM, EPROM, CompactFlash cards, PCMCIA cards, or alternatively SD or SDIO memory; and theelectronic components (e.g., floppy disk drive, DVD drive, CD/CD-R/CD-RWdrive, or Compact Flash/PCMCIA/SD adapter) that accommodate and readfrom and/or write to the storage media. As is known to those of skill inthe machine-readable storage media arts, new media and formats for datastorage are continually being devised, and any convenient, commerciallyavailable storage medium and corresponding read/write device that maybecome available in the future is likely to be appropriate for use,especially if it provides any of a greater storage capacity, a higheraccess speed, a smaller size, and a lower cost per bit of storedinformation. Well known older machine-readable media are also availablefor use under certain conditions, such as punched paper tape or cards,magnetic recording on tape or wire, optical or magnetic reading ofprinted characters (e.g., OCR and magnetically encoded symbols) andmachine-readable symbols such as one and two dimensional bar codes.

Those of ordinary skill will recognize that many functions of electricaland electronic apparatus can be implemented in hardware (for example,hard-wired logic), in software (for example, logic encoded in a programoperating on a general purpose processor), and in firmware (for example,logic encoded in a non-volatile memory that is invoked for operation ona processor as required). The present invention contemplates thesubstitution of one implementation of hardware, firmware and softwarefor another implementation of the equivalent functionality using adifferent one of hardware, firmware and software. To the extent that animplementation can be represented mathematically by a transfer function,that is, a specified response is generated at an output terminal for aspecific excitation applied to an input terminal of a “black box”exhibiting the transfer function, any implementation of the transferfunction, including any combination of hardware, firmware and softwareimplementations of portions or segments of the transfer function, iscontemplated herein.

While the present invention has been explained with reference to thestructure disclosed herein, it is not confined to the details set forthand this invention is intended to cover any modifications and changes asmay come within the scope and spirit of the following claims.

1. A terminal for conducting an ad libitum financial transactionintermediated by a payment token, comprising: a radio frequency reader,said reader configured to read a radio frequency payment token presentedas a payment medium for said ad libitum financial transaction, saidradio frequency reader devoid of a capability to simulate a readeremploying reader technology other than radio frequency; and an outputdevice for confirming that a transaction is being performed
 2. Theterminal according to claim 1, further comprising a transactionregister.
 3. The terminal according to claim 2, wherein said transactionregister is operated by a salesperson.
 4. The terminal according toclaim 1, further comprising a printer.
 5. The terminal according toclaim 4, wherein said printer is configured to print a transactionreceipt.
 6. The terminal according to claim 1, further comprising animaging device.
 7. The terminal according to claim 1, wherein theimaging device comprises a bar code reader.
 8. A terminal for conductinga financial transaction, comprising: a radio frequency reader, saidreader configured to read a selected one of a plurality of paymenttokens employing dissimilar data formats, and to provide datacorresponding to an elicited response from said selected one of aplurality of payment tokens employing dissimilar data formats; a memoryfor recording data and a machine-readable program, said memory incommunication with said radio frequency reader; a communication modulein communication with said radio frequency reader and said memory, saidcommunication module configured to communicate bidirectionally with aremote computer-based apparatus; and a processor module in communicationwith said memory and said radio frequency reader, said processor moduleconfigured by said machine-readable program to attempt to decode saiddata corresponding to said elicited response; wherein, responsive to anindication that said processor module is not configured to perform saiddecoding correctly, said communication module is configured to requestfrom said remote computer-based apparatus at least one machine-readableinstruction for properly configuring said processor module to decodesaid data.